Loads of hope

Truck loader cranes came late to Southeast Asia, where demand has been suppressed by, among other factors, the low cost of labour. In the view of Italian manufacturer Fassi, the market can be considered immature – except for Singapore, that is, where loaders are used not just in the transportation industry but also in construction for both maintenance and installation work.

Across the region markets are still suffering from the 1997 currency collapse, although there are signs of recovery. Fassi believes that, in time, demand will return stronger than ever, increasing by 10% a year to 2002 and perhaps by 20% or more thereafter (including sales of new and used cranes from Japan). Palfinger says that the impact on its sales varies between countries, depending on their economic situation.

Palfinger is firmly established in the region with a dealer network in each country, supported by a corporate representative office in Bangkok, Thailand – the very country most affected, the company says. Sales dropped to practically zero after the turmoil and the market is far from recovery. Although infrastructure projects are coming back on stream, contractors are happy to use machinery bought in the better times of the mid 1990s. What little demand there is, this year and next, comes from government and military tenders, says Palfinger’s head of group marketing Harald Böhaker.

Korea and Japan are still poor markets, Böhaker says. While Korea’s crane market is coming back slightly, local manufacturers are dominant. In Japan truck sales are still slow, and again domestic manufacturers Unic and Tadano tend to take what little market there is.

Truck sales are also slow in the Malaysian peninsular, but there are niches that can be exploited. Palfinger recently supplied 20 units of its special model PO 7080 to the palm oil fruit collecting industry. Things are a little better for Palfinger in East Malaysia, where it has supplied a few units this year ranging from 14tm to 23tm. As in Thailand, it is mostly government tenders that keep the market alive.

Telecommunication networks maintenance is proving to be an interesting market in the Philippines, where demand seems to be rising again. Palfinger’s local dealer has recently sold five units of the new 6001 model and three of the PK 2800. “More units are coming and we foresee good potential for models ranging from 5tm to 14tm,” Böhaker says.

Hong Kong loader crane users are traditionally orientated toward Italian manufacturers like Effer, which has been selling to Asia since 1982. Effer has also enjoyed steady sales over the years in Singapore and South Korea and occasional sales in Thailand, the Philippines and Indonesia. Effer’s marketing manager Giancarlo Manzano says: “We find some clear signs of recovery from Singapore and Hong Kong, while the rest of the region seems to be still weak at the moment.” Manzano says that in the first half of 2000 Effer delivered twice the amount of cranes that it delivered in the whole of 1999. He expects sales to Hong Kong to reach 50 units by the end of this year.

Effer has high expectations of Hong Kong as the demand is for its larger cranes ranging from the 20tm model 210 to the 90tm 980 with up to eight hydraulic extensions. “Considering the selling price of such cranes, the demand proves a lot of confidence in the steadiness of the local economy,” Manzano explains. He is also encouraged by recent enquiries from Hong Kong, for the 110tm rated model 1150 “which clearly shows that professional transport companies have fully understood the potential applications of large articulating cranes as a much more versatile alternative to the conventional telescopic crane”.

Possibly even more encouraging for Effer is its market penetration in China. Manzano estimates that at least 35 % of the large Effer loaders shipped to Hong Kong reach China as a final destination. In Donnguan, Canton region, distributor Folks Hydraulics has set up what Effer believes may be the largest specialised hydraulic cranes workshop in all China.

Despite the Italian orientation in Hong Kong, Palfinger claims that it has won “practically 90%” of government tenders there. Recent shipments include several PK 11080s to the Hong Kong Electrical Mechanical Service Department. Expecting an upturn in the market in the next 12 months, Palfinger’s dealer held an open day last month to promote various models including the PK 9001, PK 12080, PK 32000 and PK 75000.

Taiwan and Singapore have been the markets least affected by the Asian currency crisis, as far as Palfinger is concerned. In Taiwan the private market is still dominated by local manufacturers, but customers with special demands look overseas for more technically advanced cranes. Palfinger has sold its first PK 60000 there, with a PJ 154C fly jib, mounted on a Mitsubishi Fusu truck. Like elsewhere, the main knuckle boom crane market is through government tenders. Taiwan’s Ministry of Defence has this year ordered 70 units of the PK 9501 and PK 12080.

Böhaker says of Singapore: “Recovery is back on track.” Palfinger claims a 35% market share in Singapore, a position helped by the supply of 140 cranes (models PK 3800 and PK 9501) to the Ministry of Defence. Palfinger expects the Singapore loader crane market to grow between 10% and 15% next year and it plans new models in the 38/42tm range, where demand is high.

Böhaker claims that Palfinger is “definitely dominating the big cranes market” in Singapore but Effer also expects steady sales of its largest models. This year it has sold two 980s (90tm) there, for example.

Fassi is also active in Singapore. Marketing assistant Silvio Chiapusso says: “As in all types of new equipment, in an emerging market, price rather than loyalty or specifications is the key point in buying decisions.” But in the more mature market of Singapore things are different. “In 1997 there were 15 companies fighting for the 350 units a year. Nowadays, due to better education, resale values, maintenance costs and the economic slow-down, only Fassi, Hiab and Palfinger are still selling in the market,” says Chiapusso. “However, the total market size has shrunk by 30% from 1997 and prices have dropped too by approximately 8% to 12%.” In the markets that are still developing, says Chiapusso, the demand is mainly in the 30tm to 38tm range. For bigger lifting capacities users still turn to truck cranes. But he believes that as the economic recovery strengthens, and as operators become more accustomed to loader cranes and understand their benefits, sales of larger loaders will take off.