Bigger booms, larger lifts

Manufacturers and dealers report that the rough terrain crane market has been enjoying steady growth recently. The versatility, robustness and most importantly the cost effectiveness of these machines have seen them gain ground in markets such as Africa and China while at the same time gaining renewed interest in the US. Firms in North America in particular report that the segment to watch is the higher capacity end of the range of 70t plus, which is interesting considering the first rough terrains were only 10-18t.

One of the early pioneers of these lifting tools, which are popular on construction and industrial sites was Terex, which has its own US made line as well as the 1995 acquisition of Italian RT manufacturer Bendini. As a result the firm now has the widest range of cranes on the market with models ranging from the smaller RT 230 at 27.3t all the way to one of the largest rough terrains available, the 118t (130USt) RT130. However its most recent launches have been in the 75tto 100t (110USt) class and these are not only notable for their technical and practical advancements but for what they represent. The Quadstar 1100 and the Quadstar 1075L are the first rough terrain cranes to showcase what Terex describes as its "global development mindset".

The larger 1100 model was made in Iowa in the US whereas the 1075L came from the Crespellano factory in Italy. Despite this the machines are clearly two of a kind and show Terex's future intentions as far as its cranes go. No longer will its factories sell direct, its sales channels in each region will be responsible for all sales reducing the amount of overlap and presenting the firm's products as part of the global Terex Cranes brand. Product marketing director Rüdiger Zollondz explains that Terex Cranes goal regarding rough terrains is to offer rugged simple machines that can have accessories such as longer booms purchases as additional options ensuring that customers get the best return on investment for their crane. "Our vision is that there are different types of customers and we want to cater to all of them with an efficient product. Return on investment for customers is what drives us. If a customer doesn't want a long boom then they are not going to pay for it," he says.

The Quadstar 1100 has a 100t capacity and features a 47.2m dual mode double keel boom for optimising lifting on short or long radius. When extended maximum tip height is 76.1m. The firm plans to show a new version of the machine at ConExpo in Las Vegas in early March. Enhancements include improved access, more flat surface on the upper structure and hydraulic improvements. As for future plans Zollondz says that the 80-90t area is the main growth market and reveals that there are important developments on their way. "Rough terrains are a very important product for Terex Cranes so it is a product line that we are looking at and there are some important developments going on internally and there will be some interesting results in the near future."

World first

Another firm making dramatic developments is Japan's Tadano which as of August 2013 boasted the world's largest rough terrain crane, the GR-1600XL-2. The 145t three axle machine utilizes a sixsection Tadano easy sky pin boom - the same technology used in their all-terrain cranes. This is a single cylinder sixsection 61m boom with an 18m bi-fold off-setting jib that provides for an extended tip height of 78.2m. "The first machines are working in energy and petrochemical applications," says Ron Dogotch, general manager of sales at Tadano who adds that the firm is particularly successful in these markets in Western Canada and the Gulf Coast region of the US. "Like all Tadano products the GR1600XL-2 is proving to be a safe, dependable and efficient crane and is being very well received," he says.

The crane was created particularly to serve the growing needs of energy and mining sectors where Tadano report that longer booms and larger capacity mobile cranes are in demand. "We wanted to produce the largest rough terrain crane we could at the same time making sure it was capable of being transported in a time and cost effective manner," says Dogotch. To this end the GR-1600XL-2 features self removable counterweight and outriggers so that an assist crane is not needed and it can still be easily transported. Going up to 145t was a large step up for Tadano who previously had a maximum 100t capacity in its rough terrain range with the GR- 1000XL-2. Dogotch says the firm will continue updating and developing new products.

Manitowoc too has been working on its larger rough terrain cranes through its Grove product line and will be launching new models in March at ConExpo. "Because the rough-terrain cranes we build are so versatile, we have seen an increase in demand for the larger product sizes," says Michael Herbert, director of product planning and marketing, Manitowoc Cranes, North America. "What a larger capacity rough-terrain crane brings to today's market is a cost-effective way for customers to pick large loads that they would have done with other types of cranes in the past," he says adding that rough terrains are now doing work that small tower cranes or all terrains were previously used for. Herbert says that having a longer boom makes the rough terrains even more useful. The new RT770E which is to be launched at ConExpo for example has a 65t capacity but with a 42m main boom, the longest in this capacity class.

However Chinese manufacturer Zoomlion in hot on the heels of Grove and is launching a 55t crane with a 42m main boom extending its former model by 8m. "We have a new 65USt model between the RT55 and RT75, so now we have five different models," says Uri Toudjarov, president of Global Cranes. "We are working on a new boom for the 75t as well, which will make it the longest in its class," he says, noting that Zoomlion is constantly taking improvements from its truck crane and all terrain ranges to upgrade the rough terrain machines.

Global Cranes has a unique relationship with Zoomlion, who build the cranes for Global to sell. The move was motivated by the high cost prices that pervaded in 2007 but rental rates had stagnated. "We started this project from scratch five years ago. Chinese manufacturers didn't know what rough terrain cranes were. We basically introduced them to it and told them 'we are going to guide you and you will build them for us and we will sell them'. It is a symbiosis that really works for us," says Toudjarov.

This has meant a lot of development. "The machine that we developed five years ago is nothing like the machine that we have produced today, we have made about 150 changes, some small some larger but it is a constant evolution of design. Something that is very, very good about Zoomlion is that they can make those changes very, very fast. There are about 4/5 things every month that we are changing," he says.

Toudjarov says that the machines are deliberately heavier and points to a more conservative design approach. "For example our 55t RT is 4t heavier than the competitors in its class and we have less counterweight so that tells us that most of the weight is in the frame which is a little heavier and thicker with big outrigger beams. So the machines are more stable in general. We could take our 75t and make it 85t but strategically to have the strongest 75t in its class we think is the best strategy."

To date he says that Africa has been very successful and says that he is seeing more growth in North Africa and the Middle East and says that the firm is also taking some market share from Tadano in Asia. In North America the firm also benefits from its status as an overseas product which enables it to qualify for a Tier IV extension and therefore continue to sell cheaper Tier 3 machines to rental firms and contractors. This Toudjarov says is a 'huge advantage'.

Most firms are adapting to the tightening regulations in Europe and the US by offering both Tier IV and Tier 3 machines depending on the market. Link-Belt for example has two engine options. "For the US and much of Europe we have new Tier 4f/Stage IV packages and for locations without diesel particulate filter requirements we will still offer EuroStage IIIA/Tier 3; both packages are fitted with a Cummins 6.7 liter engine with 270 hp," says Brian Smoot rough terrain product manager at Link-Belt.

The firm's most recent rough terrain development has been the RTC-8080 series II, which has 80t capacity and sits between the RTC- 8065 series II and the RTC-8090 series II. It was launched at the company's Crane Fest in Autumn 2012. "Since then, sales have been strong. In North America applications have ranged from placing steel in Vermont in the Green Mountains to working as a helper crane for the wind energy sector in Southern California near Tehachapi Pass," says Smoot who adds that the Tier 3 version has been popular in Australia and South America too.

Overall the mood from manufacturers and dealers in the rough terrain market is one of optimism. "We see 2014 as being better than 2013," says Paul Longergan, president of New York based Empire Cranes which sells and rents out Terex rough terrain cranes. He also reinforces the perception that customers are seeking larger machines. "Initially the 30t machines were the bread and butter but now it's the 55t or bigger. You can do more with the bigger crane," he says.

Although manufacturers are working on developments in this range with longer booms, stronger more comfortable machines the supersized rough terrains led by Tadano's latest launch are another level again. Launching a three axle supersize rough terrain is not to be taken lightly and as the crane remains a very niche product only one or two firms will compete in this area.

For now rough terrains continue to enjoy consistent performance with growth in key markets and increasing competition among the manufacturers. All of which means customers are getting better machines at good prices.

Brazil operations take off
Manufacturers Terex and Manitowoc have both extended their operations into Brazil in the past couple of years. Initially the firms are assembling their products using imported components but the local content is rising. Manitowoc assembles the RT530E-2, the RT540E, the RT765E-2, the RT880E and the RT890E rough-terrain cranes, and Terex has started with its RT 555 model. Terex had to move its operations after its original assembly plant was situated in its Porto Allegre road building business which was sold to Fayat in early 2013. Construction will now take place in a former Demag factory.

Manitowoc meanwhile report a strong start to their operations at the new $75m Passo Fundo factory which began assembling in June 2012. In the past year the company sold 115 cranes into Latin America from the Brazilian base and will expand to supply Mexico and the Caribbean region this year which means sales of around 200. "We are also negotiating to get a part of Europe and Africa. We are manufacturing Tier 3 in Brazil and we decided to export to all countries that use Tier 3 engines. If we get the deal internally our capacity will increase to 270," says Luciano Dias, vice president for sales at Manitowoc Brazil. "We are discussing what is best for the company."

Thanks to the growing local content of the Manitowoc cranes buyers can now obtain low interest loans through the Brazilian Development Bank (BNDES). "We are now around 45 per cent. This means that 50% of the value of the crane is financed by the development bank. When we get to 50% they increase this to 70% and this will be a very good benefit for customers in Brazil," says Dias.

So far the company says that it has locally sourced components such as chassis, electronic components, tyres and counterweights. "The superstructure is still from the US as we have not found the right quality of steel yet. But we are working on that. We believe we can get to 60% by December this year," says Dias.

An important part of the local sourcing strategy is that the components are tested extensively to ensure they meet the Manitowoc quality requirements. To ensure that this is the case all of the newly sourced elements are first sent to the Product Verification Centre at Shady Grove in the US. Here they undergo rigorous testing in conditions that simulate the harsh working environment that rough terrains are exposed to.

Next for Manitowoc is expanding operations to include tower crane assembly and then potentially truck mounted cranes. All of these plans and the growth underway are impressive considering that the past year has been difficult for Brazil which is about to undergo presidential elections which has delayed a host of construction projects. Dias says that this means growth this year will be limited to 5-10%. "But in 2015 demand and construction will be up and running again and we believe we are in very good shape to supply Brazil and other countries also.

A niche within a niche
Manitex International acquired Badger Equipment Company including its line of rough terrain cranes back in July 2009. The firm was well known for its cab down style of rough terrain which had been highly successful in the railway building sector. "It is not as pervasive as the rough terrains from Link-Belt or Grove," says Paul Gibson, head of sales and marketing at Manitex International. "Cab down are used in railroads, for oil field items, and petrochemicals companies use them a lot as they are good in tight areas. They are a handy extension of forklifts in many cases."

Gibson reports that the CD4430R is seeing renewed interest in the rail sector, thanks to its versatility and the unique design which can absorb the high sideways stresses that are placed on the machines when lifting rail. "The CD4430R is getting more and more activity now. We have seen attempts in the railroad business to use other products and they can do it but they are not real versatile after that," he says. The firm is now looking to expand the product into overseas markets. "It has a lot of longevity and we are seeking to market it more globally. We are having conversations with people in India and in South America. We do very well with people that we are familiar with in the US but not as successful as we'd like to be in the European market but we are not giving up on that idea."

Beyond global expansion for the CD4430R the firm is also considering new products and upgrades to support its line, while at the same time really begin to integrate the businesses. "For the past few years we have operated each of our acquisitions independently. This year we will start to brand the Badger line as Manitex," he says adding that this is the first step of the integration process. "The next steps are the harder ones, all the things that come with it having different plants, accounting and support functions is more challenging but we will handle that step by step."