3
GLOBAL REPORT CONSTRUCTION EQUIPMENT 2015 www.worldhighways.com Following its highly acclaimed launch in early 2014, The GLOBAL REPORT: Construction Equipment is back for 2015 with even bigger and better in-depth expert views on the critical factors that today’s users of construction equipment need to consider in the light of our industry’s fast-developing technological and financial parameters. e GLOBAL REPORT: Construction Equipment 2015 will neatly fall between the two giant equipment exhibitions: Bauma China in Shanghai at the end of November 2014, and Intermat in Paris, which takes place from April 20 to 25 2015. As before, our team of EIGHT specialist construction equipment reporters will join forces with a host of industry experts to give a series of incisive insights into the most important developments and opportunities facing the market, as buyers decide which manufacturers and models to invest in. We will look into a wide range of new technologies and focus hard on what our thought-leaders believe will be the key determining factors that buyers of construction equipment across the world will need to consider. We will showcase the opinions of the market’s most authoritative commentators and give 70,000 industry decision- makers the inside track on which new ideas are likely to prevail, and why. Informed Authority Publication date: February 2015 Digital 50,000 + Print 20,000 ASPHALT PAVING ASPHALT PAVING A series of developments has helped push forward the boundaries with regard to the asphalt paving segment within the last years. ree areas of technology have been notable for their prominence in recent years for the asphalt paving equipment market with developments having been particularly focussed on lower engine emissions, machine control systems and material transfer vehicles. Asphalt paving machines do vary considerably, depending on the markets they are sold into. In the US, the length of highways to be constructed meant that manufacturers focussed on developing high production pavers. North America and Latin America are the main markets for these machines, while Australia is highly unusual in that different contractors will use either US or European types of asphalt paving equipment. However on a worldwide basis, the European-developed pavers with tamper bar screeds are popular. is screed system is also favoured by Japanese and Chinese manufacturers, while for both types, electric heating is becoming the most widely accepted system. A lot of the innovation for asphalt pavers of all types has come from the power source. Engine firms have invested a great deal of effort in developing new low emissions technologies to meet the phased set of regulations set out for North America and Europe. ese have resulted in new engines that produce far lower levels of NOx and particulates, with the regulations being introduced in a series of stages. For 2014 comes the first step in the introduction of the Tier 4 Final/Stage IV legislation for North America and Europe, the most stringent yet with regard to exhaust emissions and operating noise. For the asphalt paver manufacturers supplying equipment to North America and Europe, this has required an enormous investment in engineering development. Paver manufacturers have had to research the technologies the engine suppliers have developed and select the most suitable for their respective ranges. And this has not been an easy task as, in some instances, engine firms have changed the emissions solutions they have used from what was originally predicted. e machines themselves have had to be redesigned to allow the installation of these new engines as well as the aſtertreatment systems they employ. At the same time, care has been taken to ensure that sight lines from the paver decks have not been obscured, a significant challenge given the size of some of the necessary aſtertreatment components as well as the additional cooling these new generation engines require. For customers, pavers fitted with the latest engines will certainly be quieter running and smoke-free. e cost of the extra research and development and technology required to make these diesels so much more clean- running is not inexpensive though. However the engine companies have managed to address running costs in many instances, increasing the times required between service intervals and also cutting fuel consumption significantly. is last point is something all the major asphalt paver manufacturers have also prioritised for their new generation machines. Combining the new generation, low emission, low fuel consumption engines with improved load-sensing hydraulics governed by sophisticated electronic management systems has helped cut fuel consumption. is fuel economy is further improved by intelligent engine speed reduction systems that activate when the machine is running at low load. Several of the major European, Japanese and US firms such as Ammann, BOMAG, Caterpillar, Dynapac, Roadtec, Sumitomo, Vögele and Volvo CE offer this kind of economy mode. For the customer, while new engines may have added to the purchase price of equipment, fuel economy gains of around 15%, will help offset the costs, particularly in markets such as Europe, where fuel costs are high. However asphalt paver manufacturers sell machines in a much wider range of territories than Europe and North America. As a result, their new paver designs have also had to be designed so as to allow the installation of diesels for lower emissions targets such as Tier 3/Stage IIIA and Tier 2/Stage II. For the contractor, a significant efficiency saving will come with the utilisation of new machine control systems. A new generation of machine control systems is now being offered to the asphalt paving sector, with companies such as Topcon, Trimble and also MOBA, offering an array of systems to the sector. In many cases these can be plugged straight into the new electronic controls that run proprietary soſtware that paver manufacturers such as Ammann, BOMAG, Caterpillar, Dynapac, Roadtec, Sumitomo, Vögele and Volvo CE have installed on their latest machines. ese also can be connected to the advanced telematics systems now fitted to pavers from various firms, which help with machine maintenance and diagnostics, as well as monitoring performance. Both Topcon and Trimble have developed machine control systems for the asphalt paving market. ese are based around proven technology that originates from the earthmoving sector, offering higher performance and increased efficiency. Asphalt paving controls from these firms feature colour graphical displays, sonic trackers and slope sensors and can be used to monitor elevation and slope values for the screed. Meanwhile the sophisticated MOBA PAVE-IR system plays an important role as it can ensure that asphalt temperature remains within tolerance during paving and compaction. is is a highly critical factor as compaction cannot be carried out if the asphalt temperature drops below tolerance. When the asphalt is cold, compaction can crush the aggregate in the material while air voids will remain and the surface will not meet specification and will be subject to early failure. e MOBA PAVE-IR features a high-speed scanner that monitors the temperature of the mat during the asphalt paving process and this provides full electronic documentation for later analysis and recording purposes. e improved system allows a contractor to optimise operations from the moment the asphalt is fed into the paving train until the compaction rollers make their final passes over the freshly laid surface. e firm’s earlier system was used by a number of contractors, particularly in the US, and proved the efficiency of the concept. However the original design featured heat sensors mounted on a bar that restricted the movement of the paving crew around the screed, so the company opted to develop this more effective unit with its temperature scanning unit raised out of the way. e sophisticated scanner measures the temperature across the mat and can be set for widths of up to 8m. e system can check the temperature at several points, with an accuracy of +/-2°C and displays this temperature profile in real-time. By monitoring progress, the operator can identify cold or hot spots and take NEW TECHNOLOGY IS DRIVING ASPHALT PAVING TOWARDS TRUE OPTIMUM EFFICIENCY Novel asphalt paving technologies are coming to market – Mike Woof writes GLOBAL REPORTCONSTRUCTION EQUIPMENT 2014 34 GLOBAL REPORTCONSTRUCTION EQUIPMENT 2014 35 ABOVE: Machine control technologies ensure optimum paving efficiency BELOW: Improvements in asphalt paver design have made newer machines easier to operate, with far better visibility of the screed and better controls LEFT: Screed designs vary considerably between European and North American markets BELOW: Using a materials transfer vehicle minimises the risk of material segregation in the mat as well as providing a more homogenous heat gradient for the surface, while also delivering a continuous material flow to the paver MARKET INTELLIGENCE MARKET INTELLIGENCE GLOBAL REPORT CONSTRUCTION EQUIPMENT 2014 12 GLOBAL REPORT CONSTRUCTION EQUIPMENT 2014 13 T he current construction cycle in Malaysia has reached its peak, with construction activity in Q2 2013 seeing the lowest pace of expansion since Q4 2011, according to the latest Malaysia Infrastructure Report by Business Monitor, a leading independent business research consultancy covering 195 countries and 24 industry sectors. BM says it expects this slowdown to intensify, primarily due to falling demand for residential and non-residential buildings, as well as concerns about Malaysia’s fiscal position. ese concerns are said to have increased financing risks for public- funded projects, particularly within the infrastructure sector. As a result, BM has maintained its construction growth forecasts for 2013 (10.1%) and 2014 (6.7%), but revised down its longer-term forecasts, from an annual average of 5.0% to 4.5% between 2015 and 2017. In July 2013, BM states, the Malaysian Highway Authority stated that the government was considering plans to construct a new coastal highway along the east coast of Peninsular Malaysia, from Kota Bahru in the state of Kelantan to Pengerang in Johor. ere is a need to improve connectivity and accessibility in the eastern coast of the country, while most parts in the western coast areas are well-connected and served with roads and highways. BM says the project is expected to create economic spillover effects and open new growth centres in the east coast areas. e Asia-Pacific region is set to have the largest share of global demand for construction equipment in the five-years to 2015, according to the Freedonia Group. Construction machinery sales are expected by Freedonia to increase almost 7% a year until 2015, fuelled by a higher degree of mining output and construction spending. Although China will, say Freedonia, represent nearly 40% of new construction machinery demand to 2015, growth will also accelerate in Indonesia and Malaysia. Within overall construction equipment demand, fellow independent market analysis firm Timetric notes that Asia-Pacific’s share of overall global demand for earthmoving equipment will rise to 64.5% in 2016, compared to 57.8% of the $78.7 billion market value in 2011. e Indonesian construction sector has benefited greatly from soaring fixed investment, according to a VDMA study using data from Timetric. e research states that investment in construction has grown by 7.4% on an annual average basis in real terms over the past 10 years, well above the GDP growth rate of 5.9%. In nominal output terms, the VDMA study reports that the sector will grow by 15% a year in the next five years, supported by urbanisation, rising incomes and the government’s effort to improve infrastructure as part of the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development. e study reports that in order to attract investment for the master plan, set to see spending of up to US$428 billion from 2011-25, the Indonesian government is taking steps to strengthen public-private partnership (PPP) regulations. Infrastructure construction will be the leading sector for growth, according to the VDMA study, but other construction sectors, especially residential and commercial construction, will also see healthy growth given the positive economic forecast and the expansion of the country’s middle class. Singapore’s construction industry recorded a CAGR of 4.14% from 2008-12, reports Timetric. is rise was supported by public and private investments in Singapore’s infrastructure, commercial and institutional construction markets. e outlook for construction is favourable, says Timetric, due to the government’s focus on infrastructure and residential construction. Timetric state that the construction industry’s output is expected to record a CAGR of 5.04% over the period 2013-2017. Infrastructure construction will be the leading sector for growth, according to the VDMA study REST OF ASIA ABOVE LEFT: Concerns about Malaysia’s fiscal position are contributing to slower expansion LEFT: e Sila Sanon limestone quarry in ailand is playing a key role in providing high quality aggregates for the growing ai construction industry BELOW: ailand’s roads feature heavy congestion, especially in urban areas, with more work being carried out to expand the system and improve flow 2017* China 29% North America 17% Europe 12% India 7% Japan 6% Rest of World 29% 2012 China 38% North America 14% Europe 13% India 5% Japan 5% Rest of World 25% 2007 China 18% North America 28% Europe 20% India 3% Japan 8% Rest of World 23% 0 20 40 60 80 100 120 Year 2007 2011 2012 2013* 2017* Rest of World $32.3 $32.1 $29.0 $29.0 $30.3 Japan $4.6 $3.2 $4.3 $4.5 $4.5 India $1.9 $3.1 $2.4 $2.2 $3.9 Europe $19.6 $12.0 $12.4 $11.1 $12.7 North America $28.2 $20.3 $25.3 $23.2 $27.8 China $11.2 $37.1 $24.3 $22.6 $25.6 Changing Structure of Demand, 2007-2017* (% of Total) Source: Off-Highway Research *Forecast Global Equipment Sales, 2007-2017* ($Billion) Source: Off-Highway Research *Forecast Articulated Dump Trucks 2.4 Rigid Dump Trucks 4.5 Wheeled Loaders 24.3 Global Value of Construction Equipment, by Type 2012 ($Billion) Source: Off-Highway Research Crawler Excavators 38.8 Asphalt Finishers 0.8 Mini Excavators 6.0 Backhoe Loaders 5.6 Crawler Dozers 5.2 Others 0.8 Wheeled Excavators 2.5 Skid-Steer Loaders 2.6 Telescopic Handlers 3.2 Motor Graders 3.4 GLOBAL REPORT CONSTRUCTION EQUIPMENT 2014 UNIQUE CONTENT AND INSIGHTFUL OPINIONS ON THE SHIFTING MOVEMENTS WITHIN THE MARKET BY THE INDUSTRY’S MOST INFORMED AND INFLUENTIAL SOURCES www.worldhighways.com I www.aggbusiness.com Informed Authority GLOBAL REPORT CONSTRUCTION EQUIPMENT 2014 Total circulation: 70,000

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GLOBALREPORTCONSTRUCTION EQUIPMENT 2015

www.worldhighways.com

Following its highly acclaimed launch in early 2014, The GLOBAL REPORT: Construction Equipment is back for 2015 with even bigger and better in-depth expert views on the critical factors that today’s users of construction equipment need to consider in the light of our industry’s fast-developing technological and financial parameters.

The GLOBAL REPORT: Construction Equipment 2015 will neatly fall between the two giant equipment exhibitions: Bauma China in Shanghai at the end of November 2014, and Intermat in Paris, which takes place from April 20 to 25 2015. As before, our team of EIGHT specialist construction equipment reporters will join forces with a host of industry experts to give a series of incisive insights into the most important developments and opportunities facing the market, as buyers decide which manufacturers and models to invest in.

We will look into a wide range of new technologies and focus hard on what our thought-leaders believe will be the key determining factors that buyers of construction equipment across the world will need to consider. We will showcase the opinions of the market’s most authoritative commentators and give 70,000 industry decision-makers the inside track on which new ideas are likely to prevail, and why.

Informed Authority

Publicatio

n

date:

February

2015

Digital50,000+Print20,000

aSPHaLT PaVING

aSPHaLT PaVING

A series of developments has helped push

forward the boundaries with regard

to the asphalt paving segment within

the last years. Three areas of technology

have been notable for their prominence in

recent years for the asphalt paving equipment

market with developments having been

particularly focussed on lower engine

emissions, machine control systems and

material transfer vehicles.

Asphalt paving machines do vary

considerably, depending on the markets they

are sold into. In the US, the length of highways

to be constructed meant that manufacturers

focussed on developing high production

pavers. North America and Latin America are

the main markets for these machines, while

Australia is highly unusual in that different

contractors will use either US or European

types of asphalt paving equipment. However

on a worldwide basis, the European-developed

pavers with tamper bar screeds are popular.

This screed system is also favoured by Japanese

and Chinese manufacturers, while for both

types, electric heating is becoming the most

widely accepted system.

A lot of the innovation for asphalt pavers

of all types has come from the power source.

Engine firms have invested a great deal of

effort in developing new low emissions

technologies to meet the phased set of

regulations set out for North America and

Europe. These have resulted in new engines

that produce far lower levels of NOx and

particulates, with the regulations being

introduced in a series of stages. For 2014

comes the first step in the introduction of the

Tier 4 Final/Stage IV legislation for North

America and Europe, the most stringent

yet with regard to exhaust emissions and

operating noise.For the asphalt paver manufacturers

supplying equipment to North America

and Europe, this has required an enormous

investment in engineering development.

Paver manufacturers have had to research

the technologies the engine suppliers have

developed and select the most suitable for

their respective ranges. And this has not been

an easy task as, in some instances, engine

firms have changed the emissions solutions

they have used from what was originally

predicted. The machines themselves

have had to be redesigned to allow the

installation of these new engines as well as

the aftertreatment systems they employ. At

the same time, care has been taken to ensure

that sight lines from the paver decks have

not been obscured, a significant challenge

given the size of some of the necessary

aftertreatment components as well as the

additional cooling these new generation

engines require. For customers, pavers fitted with the latest

engines will certainly be quieter running and

smoke-free. The cost of the extra research

and development and technology required

to make these diesels so much more clean-

running is not inexpensive though. However

the engine companies have managed to

address running costs in many instances,

increasing the times required between service

intervals and also cutting fuel consumption

significantly. This last point is something all the

major asphalt paver manufacturers have

also prioritised for their new generation

machines. Combining the new generation,

low emission, low fuel consumption engines

with improved load-sensing hydraulics

governed by sophisticated electronic

management systems has helped cut fuel

consumption. This fuel economy is further

improved by intelligent engine speed

reduction systems that activate when the

machine is running at low load. Several of the

major European, Japanese and US firms such

as Ammann, BOMAG, Caterpillar, Dynapac,

Roadtec, Sumitomo, Vögele and Volvo CE

offer this kind of economy mode. For the

customer, while new engines may have

added to the purchase price of equipment,

fuel economy gains of around 15%, will help

offset the costs, particularly in markets such

as Europe, where fuel costs are high.

However asphalt paver manufacturers sell

machines in a much wider range of territories

than Europe and North America. As a result,

their new paver designs have also had to be

designed so as to allow the installation of

diesels for lower emissions targets such as

Tier 3/Stage IIIA and Tier 2/Stage II.

For the contractor, a significant efficiency

saving will come with the utilisation of new

machine control systems. A new generation

of machine control systems is now being

offered to the asphalt paving sector, with

companies such as Topcon, Trimble and also

MOBA, offering an array of systems to the

sector. In many cases these can be plugged

straight into the new electronic controls

that run proprietary software that paver

manufacturers such as Ammann, BOMAG,

Caterpillar, Dynapac, Roadtec, Sumitomo,

Vögele and Volvo CE have installed on their

latest machines. These also can be connected

to the advanced telematics systems now fitted

to pavers from various firms, which help with

machine maintenance and diagnostics, as well

as monitoring performance.

Both Topcon and Trimble have developed

machine control systems for the asphalt

paving market. These are based around

proven technology that originates from

the earthmoving sector, offering higher

performance and increased efficiency. Asphalt

paving controls from these firms feature

colour graphical displays, sonic trackers and

slope sensors and can be used to monitor

elevation and slope values for the screed.

Meanwhile the sophisticated MOBA

PAVE-IR system plays an important role as it

can ensure that asphalt temperature remains

within tolerance during paving and

compaction. This is a highly critical factor as

compaction cannot be carried out if the

asphalt temperature drops below tolerance.

When the asphalt is cold, compaction can

crush the aggregate in the material while air

voids will remain and the surface will not

meet specification and will be subject to early

failure. The MOBA PAVE-IR features a high-speed

scanner that monitors the temperature of the

mat during the asphalt paving process and

this provides full electronic documentation

for later analysis and recording purposes. The

improved system allows a contractor to

optimise operations from the moment the

asphalt is fed into the paving train until the

compaction rollers make their final passes

over the freshly laid surface.

The firm’s earlier system was used by a

number of contractors, particularly in the US,

and proved the efficiency of the concept.

However the original design featured heat

sensors mounted on a bar

that restricted the movement of the paving

crew around the screed, so the company

opted to develop this more effective unit

with its temperature scanning unit raised out

of the way.The sophisticated scanner measures the

temperature across the mat and can be set for

widths of up to 8m. The system can check the

temperature at several points, with an

accuracy of +/-2°C and displays this

temperature profile in real-time. By

monitoring progress, the operator can

identify cold or hot spots and take

New techNology is driviNg

AsphAlt pAviNg towArds true

optimum efficieNcyNovel asphalt paving technologies are coming to market – Mike Woof writes

globAl report construction equipment 2014

34

globAl report construction equipment 2014 35Above: Machine control technologies

ensure optimum paving efficiency

below: Improvements in asphalt paver

design have made newer machines easier

to operate, with far better visibility of the

screed and better controls

left: Screed designs vary considerably

between European and North American

marketsbelow: Using a materials transfer

vehicle minimises the risk of material

segregation in the mat as well as providing

a more homogenous heat gradient for the

surface, while also delivering a continuous

material flow to the paver

Market intelligence

Market intelligence

global report construction equipment 201412global report construction equipment 2014 13

the current construction cycle in Malaysia has reached its peak, with construction activity in Q2 2013

seeing the lowest pace of expansion since Q4 2011, according to the latest Malaysia Infrastructure Report by Business Monitor, a leading independent business research consultancy covering 195 countries and 24 industry sectors.

BM says it expects this slowdown to intensify, primarily due to falling demand for residential and non-residential buildings, as well as concerns about Malaysia’s fiscal position. These concerns are said to have increased financing risks for public-funded projects, particularly within the infrastructure sector. As a result, BM has

maintained its construction growth forecasts for 2013 (10.1%) and 2014 (6.7%), but revised down its longer-term forecasts, from an annual average of 5.0% to 4.5% between 2015 and 2017.

In July 2013, BM states, the Malaysian Highway Authority stated that the government was considering plans to construct a new coastal highway along the east coast of Peninsular Malaysia, from Kota Bahru in the state of Kelantan to Pengerang in Johor. There is a need to improve connectivity and accessibility in the eastern coast of the country, while most parts in the western coast areas are well-connected and served with roads and highways. BM says the project is expected to create economic spillover effects and open new growth centres in the east coast areas.

The Asia-Pacific region is set to have the largest share of global demand for construction equipment in the five-years to 2015, according to the Freedonia Group. Construction machinery sales are expected by Freedonia to increase almost 7% a year until 2015, fuelled by a higher degree of mining output and construction spending. Although China will, say Freedonia, represent nearly 40% of new construction machinery demand to 2015, growth will also accelerate in Indonesia and Malaysia. Within overall construction equipment demand, fellow independent market analysis firm Timetric notes that Asia-Pacific’s share of overall global demand for earthmoving equipment will rise to 64.5% in 2016, compared to 57.8% of the $78.7 billion market value in 2011.

The Indonesian construction sector has benefited greatly from soaring fixed

investment, according to a VDMA study using data from Timetric. The research states that investment in construction has grown by 7.4% on an annual average basis in real terms over the past 10 years, well above the GDP growth rate of 5.9%.

In nominal output terms, the VDMA study reports that the sector will grow by 15% a year in the next five years, supported by urbanisation, rising incomes and the government’s effort to improve infrastructure as part of the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development. The study reports that in order to attract investment for the

master plan, set to see spending of up to US$428 billion from 2011-25,

the Indonesian government is taking steps to strengthen public-private partnership (PPP) regulations.

Infrastructure construction will be the leading sector for growth,

according to the VDMA study, but other construction

sectors, especially residential and commercial construction, will also see

healthy growth given the positive economic forecast and the expansion of the country’s middle class.

Singapore’s construction industry recorded a CAGR of 4.14% from 2008-12, reports Timetric. This rise was supported by public and private investments in Singapore’s infrastructure, commercial and institutional construction markets. The outlook for construction is favourable, says Timetric, due to the government’s focus on infrastructure and residential construction. Timetric state that the construction industry’s output is expected to record a CAGR of 5.04% over the period 2013-2017.

Infrastructure construction will be

the leading sector for growth, according to

the VDMa study

rest of asIa

aboVe left: Concerns about Malaysia’s fiscal position are contributing to slower expansion left: The Sila Sanon limestone quarry in Thailand is playing a key role in providing high quality aggregates for the growing Thai construction industrybeloW: Thailand’s roads feature heavy congestion, especially in urban areas, with more work being carried out to expand the system and improve flow

2017*

china 29% north America 17% europe 12% india 7% Japan 6% rest of World 29%

2012

china 38% north America 14% europe 13% india 5% Japan 5% rest of World 25%

2007

china 18% north America 28% europe 20% india 3% Japan 8% rest of World 23%

0

20

40

60

80

100

120

Year 2007 2011 2012 2013* 2017* rest of World $32.3 $32.1 $29.0 $29.0 $30.3 Japan $4.6 $3.2 $4.3 $4.5 $4.5 india $1.9 $3.1 $2.4 $2.2 $3.9 europe $19.6 $12.0 $12.4 $11.1 $12.7 north America $28.2 $20.3 $25.3 $23.2 $27.8 china $11.2 $37.1 $24.3 $22.6 $25.6

Changing Structure of Demand, 2007-2017* (% of Total) source: off-Highway research*Forecast

Global Equipment Sales, 2007-2017* ($Billion)source: off-Highway research*Forecast

Articulated Dump trucks 2.4

rigid Dump trucks 4.5

Wheeled Loaders 24.3

Global Value of Construction Equipment, by Type 2012 ($Billion)source: off-Highway research

crawler excavators 38.8

Asphalt Finishers 0.8

mini excavators 6.0

Backhoe Loaders 5.6

crawler Dozers 5.2

others 0.8

Wheeled excavators 2.5

skid-steer Loaders 2.6

telescopic Handlers 3.2

motor Graders 3.4

GLOBALREPORTCONSTRUCTION EQUIPMENT 2014

UNIQUE CONTENT AND INSIGHTFUL OPINIONS ON THE SHIFTING MOVEMENTS WITHIN THE MARKET BY THE INDUSTRY’S MOST INFORMED AND INFLUENTIAL SOURCES

www.worldhighways.com I www.aggbusiness.com

Informed Authority

GLOBAL REPORT CO

NSTR

UCTIO

N E

QU

IPM

EN

T 2014

We could tell you about the new innovative features on the Roadtec Shuttle Buggy™ MTV like 38% more auger surface area or how all of the conveyor floors are made of chromium carbide plate. We could talk about our stronger chains with newer sprockets. But the thing that really separates us from the others is how we backed it up with the industry leading EDGE™ extended warranty; A 3 year, 3,000 hour unlimited warranty that isn’t prorated. Roadtec will reimburse you for your labor and covers everything but wear parts. That’s how we DARE TO BE DIFFERENT.

WE DARE TO BE DIFFERENT,SO YOU CAN BE YOUR BEST.

Standard Warranty: 1 YEAR OR 1,000 HOURS EDGE™ Extended Warranty:3 YEARS OR 3,000 HOURS EDGE™ Engine Warranty: 5 YEARS OR 6,000 HOURS

Total circulation:70,000

GLOBALREPORT

CONSTRUCTION EQUIPMENT 2014UNIQUE CONTENT

AND INSIGHTFUL

OPINIONS ON

THE SHIFTING

MOVEMENTS

WITHIN THE

MARKET BY

THE INDUSTRY’S

MOST INFORMED

AND INFLUENTIAL

SOURCES

www.worldhighways.com I www.aggbusiness.com

Informed Authority

GLOBAL REPORT CO

NSTR

UCTIO

N E

QU

IPM

EN

T 2014

We could tell you about the new innovative features on the Roadtec

Shuttle Buggy™ MTV like 38% more auger surface area or how all

of the conveyor floors are made of chromium carbide plate. We

could talk about our stronger chains with newer sprockets. But the

thing that really separates us from the others is how we backed it

up with the industry leading EDGE™ extended warranty; A 3 year,

3,000 hour unlimited warranty that isn’t prorated. Roadtec will

reimburse you for your labor and covers everything but wear parts.

That’s how we DARE TO BE DIFFERENT.

WE DARE TO BE DIFFERENT,

SO YOU CAN BE YOUR BEST.

Standard Warranty:

1 YEAR OR 1,000 HOURS

EDGE™ Extended Warranty:

3 YEARS OR 3,000 HOURS

EDGE™ Engine Warranty:

5 YEARS OR 6,000 HOURS

THIS DEFINITIVE AND FORWARD-LOOKING PUBLICATION WILL BE CIRCULATED TO THE TOTAL CONSTRUCTION EQUIPMENT DATABASE OF ROUTE ONE PUBLISHING, MAKING IT A PARTICULARLY COST-EFFECTIVE ADVERTISING OPPORTUNITY AT THE START OF THE YEAR.

Market intelligence

Market intelligence

The Global Report

Construction Equipment

2014 has been written by a

team of expert journalists

from World Highways

and Aggregates Business,

as well as leading figures

from the industry itself.

In this piece, on the global outlook for the

world’s leading road construction equipment

manufacturers, we are pleased to include an

expert view from Paul Howard, a consultant

with Off-Highway Research. Despite the

global economic crisis and a government-led

slowdown in China, cautious optimism is

creeping back.

It’s been a tough few years for the world’s

construction equipment manufacturers.

Despite the fallout of the global

economic crisis over the last five years,

there has been cautious optimism among

many senior figures of the world’s leading

equipment manufacturers during equipment

launches and media interviews at the

biggest industry trade shows. The latest

construction equipment unit sales forecast

from Off-Highway Research (OHR), an

international construction equipment

industry management consultancy, backs

such restrained optimism. After global sales

of US$97.8 billion in 2012, OHR tips sales of

$104.8 billion in 2017 – a rise of 6.6%.

Within the overall figures, however,

some key regional markets are predicted

by respected industry analysts and national

associations to fare much better on future

unit sales and levels of production than others.

Markets such as Africa, the Middle East,

parts of South America such as Brazil, and

Asian countries such as Indonesia are already

flourishing as governments and private

investors invest and the likes of The World

Bank continue to loan hundreds of millions

of dollars for vital new transport and other

infrastructure.

Read on for a region-by-region look at the

fast-changing global construction equipment

industry world.

Meanwhile, OHR has

tipped average annual

Europe construction machine

sales to average 115,400 units a

year from 2013-2017 – down from

an 118,589 unit average 2008-2012.

On sales by machine, OHR forecasts little

change between 2012 and 2017. Of 2012

machine sales, 33% were mini excavators;

19% were telescopic handlers; 16% of sales

were of crawler excavators; another 16%

were wheeled loaders; 6% were wheeled

excavators; 3% of sold units were skid steer

loaders; a further 3% of sales were of backhoe

loaders; and 4% of sales were made up of

other machines.

In 2017, OHR predicts that the only

change in machine percentage sales changes

will be a 1% dip in telescopic handler sales

(to 18%), and a 1% rise in

backhoe loader sales (to 4%).

In terms of percentage

of machine sales by country,

UK machine sales are tipped to

increase from 20% of all Europe sales

in 2012 to 21% in 2017; and Germany sales

to dip from 27% in 2012 to 24% of overall

European sales by 2017. French machine

sales are forecast to fall from 21% of all-

Europe sales in 2012 to 19% of sales in 2017;

and Italy machine sales from 7% of all the

continent’s machine sales in 2012 up to 9%

in 2017. Other countries combined sales are

tipped to rise from 25% of all-Europe sales to

27% of total sales.

OHR has reported a 29.7% fall in

the average annual level of European

construction machines produced from 2008-

2012 (to 134,996 units a year), compared to

192,167 a year average production levels from

2003-2007.The Russian construction industry

recorded a nominal Compound Annual

Growth Rate (CAGR) of 9.68% from 2007–

2012, reports Timetric, the independent

business research analysts. Understanding

how modernising infrastructure can lead

to long-term growth, the government has

announced large-scale investment in road

and rail infrastructure. Timetric notes that

construction related to the 2014 Winter

Olympic Games in Sochi and the 2018 FIFA

World Cup is anticipated to support growth

in all construction markets. In particular,

infrastructure construction is projected to

remain the fastest-growing construction

market to 2017.

A brIghter future?

The global construction equipment manufacturing industry is still recovering from

the dramatic impact of the 2008 world financial crisis - Guy Woodford reports

globAl report construction equipment 2014

6

globAl report construction equipment 2014 7

european construction machine exports

fell 15.8% between January 1 and

May 31 2013 to €11.049 billion from

€13.096 billion over the same period of 2012,

according to new CECE (Committee for

European Construction Equipment) figures.

Germany was the biggest Europe-based

export market for European construction

machines importing €1.107 billion worth

of machinery – down 14.1% on €1.288

billion over the same period the previous

year. France was the second biggest Europe

export market importing €832.51 million

of construction machines over the first five

months of 2013, a fall of 14.8% on €977.14

million in 2012. Exports into the UK fell

less sharply (-3.8%) to €449.48 million from

€467.28 million. Other key export nations

for European construction machines were

the US, importers of €1.08 billion worth of

equipment – down 23.4% on €1.42 billion

worth of machines imported in the 2012

recording period. Russia imported €792.55

million of European construction machines,

compared to €931.15 million between

January 1 and May 31 2012. Australian

imports of European exported construction

machines were worth €343.73 million – down

41.2% on the €584.32 million of machines

the previous year. European exports to China

were worth €228.08 million January 1 to

May 31 2013 – a fall of 28.1% on the €317.02

million worth of machines exported in the

first five months of 2012.

the Association of Equipment

Manufacturers (AEM) say US

construction machinery exports

dropped 21% during the first half of

2013, with US$10.8 billion shipped to

global markets compared to $13.7 billion

in H1 2012.

The AEM report that nearly all

world regions recorded double-digit

declines, except Central America with a

double-digit gain.

Construction machinery

exports to Europe in H1

2013, compared to H1 2012,

declined 20% for a total

$1.4 billion, with exports to

Canada down 15% to a total

value of $3.7 billion. Exports

to Asia decreased 24% to

$1.2 billion, while exports to

Central America gained 15%

to $1.2 billion. Exports to South

America dropped 13% to $1.9 billion.

In other key US export markets, Australia/

Oceania’s export purchases fell 62% to $750

million, while Africa took delivery of $654

million worth of construction equipment,

down 20% on exports during the first half of

2012.The five countries buying the most US

made construction machinery during the

first half of 2013 were: (1) Canada - $3.7

billion, down 1%; (2) Mexico - $1 billion, up

18%; (3) Australia - $715 million, down 63%;

(4) Brazil - $513 million, up 17%; and (5)

Chile - $475 million, down 38%.

The AEM off-road equipment

manufacturing trade group consolidates

US Commerce Department data with

other sources into global trend reports for

members.OHR has reported that while the

North American construction machine

manufacturing industry is still fragile, there

are positive signs of recovery. It paints

a more encouraging picture of

North American machine sales

over the next few years. Sales

averaged 118,233 units a

year from 2008-2012, but

that is forecast by OHR to

rise to 161,595 units a year

from 2013-2017 – reaching a

high of around 180,000 units

sold in 2016.

Combined sales of machines

outside crawler dozers, skid steer

loaders, backhoe loaders, crawler excavators,

mini excavators, wheeled loaders, telescopic

handlers, are tipped by OHR to rise from 8%

of overall North American machine sales in

2012 to 13% of overall sales in 2017.

On a less positive note, OHR has

illustrated how North American construction

machine production has fallen dramatically

in recent years. While the number of units

manufactured from 2003-7 averaged 184,734

a year, that average fell to 98,803 units a year

from 2008-2012 – a fall of 46.5% compared

to 2003-7, reaching an annual low of around

55,000 units in 2009, a year after the start of

the global financial crisis.

europe

unIted StAteS

of 2012 machine

sales, 33% were

mini excavators

fAr left: The world’s largest tunnelling

machine was used on Italy’s important road

connection between Bologna and Florence

left: In Finland, a new motorway link

being built as a green highway will link

Europe to Russia

north American

construction machine

production has fallen

dramatically in

recent years

AboVe top: Many existing US roads and

highways are now ageing and do not

meet current standards

AboVe loWer: The demolition of Doyle Drive

in April 2012 was part of the ongoing Presidio

Parkway project in San Francisco, California

AsphAlt pAvement Recycling

AsphAlt pAvement Recycling

global report construction equipment 2014

44

global report construction equipment 2014 45

laid back down in two layers of 200mm and 130mm thickness using a conventional paving machine. Next, this base will be covered with an asphalt surfacing layer only 50mm thick. The sections recycled in 2011 are still performing in excess of expectations.Also, the cold recycling projects carried out back in 2003/2004 involving foam bitumen in Greece, on the highways between Iliki – Corinth – Athens, have demonstrated their high performance over the past 10 years in spite of carrying significant traffic levels of 40,000 vehicles/day, with 25% being heavy goods vehicles. To achieve results of this kind requires extensive studies of the entire road pavement in advance, as well as a detailed examination as to whether the mixing material is suitable for use with foam bitumen. Wirtgen sends its road construction engineers to accompany such projects all over the world, and also provides consulting to assist local road construction experts. Application experts from Wirtgen are available directly on the ground with their equipment, expertise and experience for preliminary investigations of materials, intensive surveys of the road pavement and even carrying out the construction work themselves.Cold recycling offers several key cost and materials benefits. These include the reduction of transport to the job site by up to 90%, savings for binding agents of up to 30%, conserving resources by up to 90% and the avoidance of the need for waste disposal of up to 100%. Cold recycling offers other advantages too including environmental benefits, as full use is made of the material in the existing pavement while the volume of new material that needs to be imported from quarries is minimised. As a result, haulage is drastically reduced, as is the damage caused

by heavy vehicles travelling on existing roads in the vicinity of the project. The overall energy consumed by recycling is also significantly less compared to all other rehabilitation options.It is important to note that the quality of the recycled layer can be maximised. Consistent, high quality mixing of the in-situ materials with water and stabilising agents is achieved using modern recyclers. Micro-processor controlled spraying systems

road building firms over recent years, as illustrated by two projects in Germany and Italy. Alongside the further development of its machines, Wirtgen is also continuously optimising the cold recycling process. For example, its experts developed the downcut process for in-situ cold recycling. In this concept, not only can the milling drum rotate opposite to the travel direction in the upcut process, but also with downcut milling. This allows the recycled material to be loaded directly off the rear onto a road paver which immediately paves and compacts it. Following that, drums carry out the final compaction. The downcut process allows for precise monitoring of the particle sizes during material preparation – especially in very heavily fractured, old asphalt roads.

The new process also simplifies material guidance and has already been used successfully for in-situ cold recycling in North America, while there is additional

potential for it to be used in other markets.Cold recycling is the future of road rehabilitation according to Wirtgen. The global road infrastructure faces excessive demands and onerous challenges in the 21st century. High population growth in developing countries coupled with a need for improved infrastructure to stimulate economic growth, form but a few of these challenges.“In-situ cold recycling offers the most economical alternative for repairing the structure of roads. Often, roads merely undergo ‘cosmetic’ rehabilitation – involving the uppermost structure or simply renewing the asphalt surfacing – which frequently only delivers a temporary improvement and masks the true condition of a road’s construction. The requirement for sustainable road construction technologies is unavoidable,” said Diekmann.The cold recycling process has proved its effectiveness worldwide and can withstand even the heaviest traffic loadings, as shown by the example of the Ayrton Senna Highway in Brazil. It is one of the busiest roads in the world, carrying in excess of 250,000 vehicles/day with a heavy traffic proportion of more than 15%.

During the rehabilitation, the milled material previously extracted from the existing asphalt package was recycled with foam bitumen in a cold mixing system, then

route 17 in Hamptonthis uS project on route 17 in the state of Hampton used a Wirtgen 3800Cr rear load model. the recycling width was 3.8m and was carried out to a depth of 120mm. the mix used a cement content of 1% as well as a foamed bitumen content of 2.2%. the machine achieved a production rate of 520tonnes/h and ran at an average working speed of 8.5m/min. For this job, the inside lane was recycled across its full width in a single pass, with truck traffic on route 17 running in the adjacent lane.

Cold recycling offers several key cost and

materials benefits

“In-situ cold recycling offers the most economical alternative for repairing the structure of roads”martin Diekmann

0

5

10

15

20

25

30

35

paving 0.1

Asphalt 2.2

Bitumen 4.9

raw materials 0.9

recycler 0.4

transport 0.9

removal 0.2

paving 0.4

Asphalt 14.3

Bitumen 6.8

raw materials 3.5

recycler 0

transport 4.9

removal 0.2

Conventional Method kgCO2/m2

Cold Recycling kgCO2/m2

The CO2 balance sheet provides a comparison between conventional repair and the recycling process

sum 9.6

sum 30.1

beloW: The Wirtgen WR 4200 cold recycling machines on a construction project in China

both the in-situ cold recycling process and machine development have benefited from rapid advances during the past three decades. “but the road industry has underestimated bSm technology. With the right mix design and construction technique, it is a user-friendly technology, but practitioners shouldn’t underestimate various points,” said prof Kim Jenkins of Stellenbosch university in South africa. He said it is crucial that when dealing with the variability of in-situ materials, supporting conditions, field moisture, rap percentage and quality and existing layer thicknesses. these need to be systematically dealt with. He added that there also needs to be a strong understanding of the key performance properties of the mix, such as shear properties of bSms and resistance against permanent deformation. prof Jenkins added that it is important to understand that the mechanisms of stiffness and strength change over time, such as with curing after construction. He said that for a project it is key to know how materials should be designed, such as the stiffness values that should be used. another important issue, is understanding the mechanisms of bSms to resist moisture damage and how to test this, as it cannot be carried out with asphalt type tests.most of these aspects have been addressed through research. “but practitioners think that this is an easy material to use and they don’t need to understand what really makes the material perform well,” said prof Jenkins.

novel reCyCling metHod

interState i-81, virginathis project used a Wirtgen 3800Cr in a downcutting operation on interstate i-81 in the uS State of virginia. the recycling width was 3.8m and the work was carried out to a recycling depth of 120mm. the mix featured a cement content of 1% and a foamed bitumen content of 2.5%, with the work being carried out over a 6km stretch of road. While work was being carried out, traffic at interstate 81 was guided past the construction site on the adjacent, previously recycled right-hand lane.

• MARKET INTELLIGENCE: What are the most important trends in construction equipment sales and what sort of materials are being specified? Graphs and charts will give readers a vital update on what is being bought, and why.

• CHINA: How will Asia’s biggest superpower push forward into the global construction equipment market and take on the established machinery and technology suppliers in the West? Will there be more emphasis on finance and insurance deals to keep the customer feeling safe? How important is the maintenance and spare parts offering to buyers with increasing standardisation of components? Will it all come down to doing the best deal, taking account of resale values, or will added-value services make the difference?

• MACHINE CONTROL: How are the leading equipment integration systems starting to make a difference, and do their benefits accrue in equal measure to large and small sites? Is machine control technology making mixed fleets more competitive?

• TELEMATICS: In addition to helping fleets operate more efficiently, telematics are now being widely used to help individual machines, and not just new ones, perform at a consistently higher level. Is it all about performance optimisation, or can the fast-moving world of telematics really change behaviour and make our industry a better place to work?

• NON-OPERATED PLANT AND AUTONOMOUS CONTROL: How far can we go with this hands-off approach? What are the main benefits and where will the technology go next?

• SITE MANAGEMENT SOFTWARE: When will we get to maximum efficiency, or is it just a dream? Welding together huge amounts of data in real time with the sort

of communication that flows through a big project is a major challenge – what is the latest thinking on how to get it right?

• THE MINT ECONOMIES: Take a tour of Mexico, Indonesia, Nigeria and Turkey and find out what influence this next group of emerging powerhouse economies can have on the overall construction market.

• THE SUPPLY CHAIN: If you cannot get the right equipment and materials in the right place at the right time at the right cost, your project will fail and your costs will spiral out of control. What is happening in the construction equipment supply chain and what is driving change? Big infrastructure projects need a tight chain of construction equipment owners, investors, designers, constructors, suppliers, financiers, engineers, maintenance staff and spare parts delivery networks to keep everything on the move. Who does it well, and why?

• THE TREND TOWARDS RENTAL: Should you buy or should you rent? Is the old idea of writing capital equipment off during the course of a big project yesterday’s way of doing things?

• NEW VERSUS USED: How reliable is used equipment? When and how should you consider used equipment? What are the key factors and the most important entry points in this equation?

• EUROPE: Where do CECE and CEMA think the market is heading in Europe? Will it be new regulations on the environment, emissions or safety that will push Europe ahead, and oblige contractors to renew their fleets, or does the continent still face another year of slow sales?

Our experts will be analysing a wide range of key topics including:

aSPHaLT PaVING

aSPHaLT PaVING

to make these diesels so much more clean-running is not inexpensive though. However the engine companies have managed to address running costs in many instances, increasing the times required between service intervals and also cutting fuel consumption significantly. This last point is something all the major asphalt paver manufacturers have also prioritised for their new generation machines. Combining the new generation, low emission, low fuel consumption engines with improved load-sensing hydraulics governed by sophisticated electronic management systems has helped cut fuel consumption. This fuel economy is further improved by intelligent engine speed reduction systems that activate when the machine is running at low load. Several of the major European, Japanese and US firms such as Ammann, BOMAG, Caterpillar, Dynapac, Roadtec, Sumitomo, Vögele and Volvo CE offer this kind of economy mode. For the customer, while new engines may have added to the purchase price of equipment, fuel economy gains of around 15%, will help offset the costs, particularly in markets such as Europe, where fuel costs are high.However asphalt paver manufacturers sell machines in a much wider range of territories than Europe and North America. As a result, their new paver designs have also had to be designed so as to allow the installation of diesels for lower emissions targets such as Tier 3/Stage IIIA and Tier 2/Stage II. For the contractor, a significant efficiency saving will come with the utilisation of new machine control systems. A new generation of machine control systems is now being offered to the asphalt paving sector, with companies such as Topcon, Trimble and also MOBA, offering an array of systems to the sector. In many cases these can be plugged straight into the new electronic controls that run proprietary software that paver manufacturers such as Ammann, BOMAG, Caterpillar, Dynapac, Roadtec, Sumitomo, Vögele and Volvo CE have installed on their latest machines. These also can be connected to the advanced telematics systems now fitted to pavers from various firms, which help with machine maintenance and diagnostics, as well as monitoring performance.Both Topcon and Trimble have developed machine control systems for the asphalt paving market. These are based around proven technology that originates from the earthmoving sector, offering higher performance and increased efficiency. Asphalt

paving controls from these firms feature colour graphical displays, sonic trackers and slope sensors and can be used to monitor elevation and slope values for the screed.Meanwhile the sophisticated MOBA PAVE-IR system plays an important role as it can ensure that asphalt temperature remains within tolerance during paving and compaction. This is a highly critical factor as compaction cannot be carried out if the asphalt temperature drops below tolerance. When the asphalt is cold, compaction can crush the aggregate in the material while air voids will remain and the surface will not meet specification and will be subject to early failure.

The MOBA PAVE-IR features a high-speed scanner that monitors the temperature of the mat during the asphalt paving process and this provides full electronic documentation for later analysis and recording purposes. The improved system allows a contractor to optimise operations from the moment the asphalt is fed into the paving train until the compaction rollers make their final passes over the freshly laid surface. The firm’s earlier system was used by a number of contractors, particularly in the US, and proved the efficiency of the concept. However the original design featured heat sensors mounted on a bar that restricted the movement of the paving crew around the screed, so the company opted to develop this more effective unit with its temperature scanning unit raised out of the way.The sophisticated scanner measures the temperature across the mat and can be set for widths of up to 8m. The system can check the temperature at several points, with an accuracy of +/-2°C and displays this temperature profile in real-time. By monitoring progress, the operator can identify cold or hot spots and take appropriate action to ensure that compaction processes are carried out efficiently. As the temperature gradient data is merged with GPS position information and can be downloaded using a USB stick, the contractor can use this data within MOBA’s PAVE Project Manager software to assess paving quality. The temperature and GPS data can also be sent remotely using a GSM connection to a server, with internet connectivity allowing the data to be used for analysis and quality management. Another important tool in ensuring even asphalt temperatures at the screed comes in the

shape of the material transfer vehicle. This has an added bonus in that it can also minimise the risk of material segregation, providing a more homogenous surface both in terms of temperature gradient and aggregate sizes. Material transfer vehicles are of particular importance for large highway paving jobs, where a consistent material supply is required, without the risk of interruptions. A discontinuous asphalt supply can result in cold spots that are hard to compact and may leave bumps, showing exactly where the supply of material into the paver from one truck ended, and the next began.

The latest generation of material transfer vehicles feature automatic controls that allow them to follow the paver closely, without impeding progress. Many of these machines are also available with conveyors that can be swung into position to allow side loading if required.Roadtec has led the field for material transfer vehicles for many years, with its highly successful Shuttle Buggy. This machine is well accepted in many international markets, so much so that its use is even written into the client specification for a paving job in some instances. Having developed this lead, Roadtec has been keen to maintain its position and the Shuttle Buggy has been through successive upgrades, with this latest version featuring critical wear components made from materials that should last up to 50% longer. These improvements will help cut downtime for maintenance, with improvements to the overall structure also increasing reliability and productivity, and a low emission engine offering reduced fuel consumption.Also wheel-mounted, the Weiler E2850 material transfer vehicle is said to offer efficient remixing of materials, with a capacity of 22.5tonnes. Power comes from a Caterpillar diesel and in a novel move this machine is now available through Caterpillar dealers in some territories. It can be supplied as part of a paving train to go along with Caterpillar pavers and the dealers will also supply service and support. Initially this was for the North American market but has now been broadened to include Australia, Russia and Mongolia.

One sophisticated competitor to Roadtec’s Shuttle Buggy is a very different machine in concept. Vögele’s MT-3000-2 material transfer vehicle is a crawler machine with a transfer capacity of up to 1,200tonnes/hour. This replaced the firm’s earlier machine in the global report construction equipment 2014

36

global report construction equipment 2014 39

the lastest forecast from the Freedonia group suggests that worldwide sales of construction aggregates will expand by 5.8% per annum to 53.2 billion tonnes in 2017. Following recent declines from 2007-2012, aggregates demand is expected to rebound in North america and Western europe. eastern europe is also expected to register faster growth. the global market will continue to be driven by above average growth in the large asia/pacific and africa/Mideast regions,” says Freedonia analyst gleb Mytko.the non-building market

for construction aggregates is expected to outperform the building segment through 2017, as many countries will invest heavily in their public infrastructures. Crushed stone is expected to account for over one-half of all new product demand generated between 2012-2017. these and other trends are presented in World Construction aggregates, a new study from the Freedonia group, a Cleveland, USa-based industry market research firm.between 2012-2017, more than 50% of all additional construction aggregates demand

will be attributable to China, where massive gains in building and non-building construction activity will stimulate sales. as the Chinese market matures, growth is expected to decelerate noticeably from the breakneck pace of the last decade. aggregates consumption in India, the asia/pacific region’s second largest market, will expand at a somewhat faster pace than China through 2017.the construction aggregates markets of eastern europe, North america and Western europe are projected to expand between

3-5% per annum through to 2017. as these regions recover from financial and fiscal crises, residential, commercial and public works construction activity will rebound, generating additional demand for aggregates. eastern europe and North america will record somewhat faster growth than Western europe during the 2012-2017 period. In terms of major countries, Spain, russia, the United States and Italy are expected to perform particularly well, due to a considerable amount of pent-up aggregates demand in these markets.

WorldWIde CoNStrUCtIoN aggregateS prodUCtIoN WIll booM by 5.8% per aNNUM to 2017

World Construction Aggregates Demand (Million Metric Tonnes) source: Factfish*Forecast 2007

20122017*

30.300

40.150

53.200

north America 3.800 Western europe 3.275 Asia/pacific 17.350 other regions 5.875

north America 3.050 Western europe 2.550 Asia/pacific 27.000 other regions 7.550

north America 3.750 Western europe 3.000 Asia/pacific 36.500 other regions 9.950

north America -4.3% Western europe -4.9%

Asia/pacific 9.2% other regions 5.1%

-6 -4 -2 0 2 4 6 8 10

2007-2012

north America 4.2% Western europe 3.3%

Asia/pacific 6.2% other regions 5.7%

0 1 2 3 4 5 6 7 8 9 10

2012-2017

roadtec has led the field for material transfer vehicles for many years

asphalt plants

therefore expect a global market in decline

– in terms of volume (number of asphalt

plant and linked equipment units sold) but

above all in terms of billing. This profession,

like many others, needs to strike a new

balance linked to globalisation: maintaining

its European centres of competence while

managing two very different markets (Europe

and the Rest of the World).”

Despite the inherent complexities associated

with operating commercially in a globalised

market, Bonvallet believes sales opportunities

are there for all asphalt plant and associated

technology manufacturers in “all countries

characterised by dense population –

particularly in urban areas – which are also

experiencing significant, constant growth over

several years, and are stable politically.”

Of the increasing use of RAP in asphalt

plant mixes, he says, “It is not solely the

result of legislation, but also the high price

of bitumen – which has risen by 250% over

seven years.” Bonvallet claims that Marini-

ERMONT is very competitive in this area due

to the firm’s control of continuous techniques,

which, he says, “enables simple, economical

recycling up to 50%.” He continues, “We have

13 recycling solutions that can be put into

practice, but we believe that the simplest,

least expensive solutions are often the best.

Marini has just commissioned a highly

versatile plant in Singapore, equipped with

three recycling systems, producing hot-mix

and warm-mix asphalt and boasting an

impressive storage of finished products. As

the most modern plant in the Asean zone,

this is proof that the markets are multiple,

and that in a mostly emerging zone, in

countries including Philippines, Indonesia

and Thailand, hi-tech demand can go hand in

hand with low-cost solutions.”

Bonvallet believes Europe “took the lead”

on warm-mix asphalt plant production in

the early 2000s, after the first production

using Fayat foam began in Holland in 1999.

“Curiously, it took more than 10 years for

the European market to take off, structure

itself and gain credibility. Warm-mix

asphalt production in the US did not get off

the ground until years later – but by 2012

accounted for 20% of total production.

We note that the bulk of this American

production is done with foamed bitumen,

unlike in Europe where lots of company-

specific solutions still jostle for space.”

The cause of a “cyclical lag” in Europe

on warm-mix asphalt production does

not lie, says Bonvallet, in the fact that one

process is better than another, but in the fact

that there are multiple specifications and

different objectives, specific to companies and

contractors alike. “Processes are now clarified

with several countries having published

guides, and we therefore predict that warm-

mix asphalt production will now experience

double-digit growth. This development

concerns Europe, as well as China which is

taking environmental constraints into ever

greater consideration.” All warm-mix asphalt

solutions, whether chemical, mechanical or

based on foam, are available, says Bonvallet,

through the Fayat Group.

According to Bonvallet, asphalt emulsion

cold mixes may finally be developed after

20 years of “relatively stagnant production”.

He believes these solutions – which he

stresses are certainly more difficult to put

into practice with virgin aggregates – are

ideally suited to recycling, and therefore

to RAP. “RAP production is rising sharply

and not everything will be processed hot.

The company SAE has the most expertise

on the subject in Europe – and is part of the

Fayat Group. The combination of this centre

of competence’s resources and the FAYAT

Group’s logistics and international standing

are undeniable assets.”Although the latest Eurobitume figures on

European bitumen consumption, which show

a fall across the continent from 14.94 million

tonnes consumed in 2011, to 12.917 million

tonnes in 2012, support concerns raised by

leading asphalt plant sector figures such as

Bonvallet, one leading industry research

organisation is offering a more positive

outlook on overall worldwide bitumen

demand.A market report published mid-2013

by Transparency Market Research (TMR)

titled Bitumen (Paving, Oxidized, Cutback

and PMB) Market For Roadways, Roofing,

Adhesives and Insulation-Global Industry

global report construction equipment 201460

global report construction equipment 2014 61

beloW: The sun rises on the Marini Top

Tower 4000 plant being used by Lane for

runway paving at the Midfield Terminal

Complex in Abu Dhabi, UAE

“RAP production is rising sharply and

not everything will be processed hot”

Jacques Bonvallet

asphalt plants

The Global Report Construction Equipment

2014 has been written by a team of expert

journalists from World Highways and

Aggregates Business, as well as leading figures

from the industry itself. In this piece, on the

way in which the world’s emerging economies

are helping to push forward the development

of new asphalt plant technologies, we are

pleased to present expert views from Bernd

Benninghoven, the managing director of

Benninghoven, and Jacques Bonvallet, sales

and marketing director of Fayat. These two

industry authorities take a look into the

future of the asphalt plant and outline the

key drivers of change, in a comprehensive

overview of issues like the use of RAP

(Recycled Asphalt Pavement), the use of LEP

(Lignite Energy Pulverised) and the relative

benefits of hot and cold mixing.

Falling world bitumen consumption;

the commercial and environmental

advantages and disadvantages of opting

for warm or cold mix, rather than traditional

hot mix asphalt plant production; the use and

percentage of use of RAP (Recycled Asphalt

Pavement) in a mix; and the growing use

of Lignite Energy Pulverised (LEP) during

asphalt plant production are set to remain

among key talking points within the asphalt

plants sector of the construction equipment

industry for the foreseeable future.

Last year saw the world’s leading asphalt

plants manufacturers release new plants

and linked technology in response to all

these crucial sector debates. So what does

the future hold for asphalt plant and related

equipment manufacturing?

According to Jacques Bonvallet, Fayat

sales and marketing manager, whose France-

headquartered construction equipment

manufacturing group owns Italian asphalt

plant and associated technology manufacturer

Marini, there has been a “structural transition”

in the asphalt plants sector.

“World bitumen consumption has been

falling sharply ever since a peak in 2007,

before the (2008) global economic crisis.

If we reincorporate the share of bitumen

contained in recycled material in the

economic cycle, which could account for

10% of the total in mature markets, at the

very most we have stagnation in global

asphalt production, with major variations

between mature markets, BRIC and emerging

markets,” says Bonvallet.

“The market is segmented between

European countries – some of which are

equipped or over equipped with asphalt

plants and related equipment - where partial

(asphalt plant and linked equipment)renewal

is taking place and production means are

being concentrated, while other (non-

European) countries are building their road

networks often with mobile equipment,

generally to lower level standard. We

emerging economies push design into a greener and more eFFicient FutureAsphalt plant and linked technology manufacturers are keen to offer more efficient

and greener production and seek out big commercial opportunities in countries

with ambitious plans to develop new or upgrade decaying highways’ infrastructure.

But there are many key factors to ponder in this sector, as Guy Woodford reports

aboVe: ADM EX Series: ADM’s EX Series

asphalt plants produce 90.71 to 385.55tonnes

per hour at a very low cost per tonne.

The US firm claim the plants also have the

longest aggregate drying and mixing times

in the industry

The GLOBAL REPORT: Construction Equipment 2015 will be circulated to a total of 70,000 qualified decision-makers worldwide and provide carefully-researched, well-written and authoritative articles on the most important engineering and technological developments affecting our industry.

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