RTs on the rise

It looks like global sales of rough terrain cranes will make a significant rise this year. In 2004 worldwide shipments of RTs reached 2,360 units, a fraction up on the 2003 figure of 2,335, despite a 23% fall in the first quarter. This suggests a resurgence later in the year and there are signs that this will continue through 2005, led by growth in the traditional big two RT markets – Japan and the USA.

In Japan, RT sales were down from a little over 1,200 units in 2003 to around 1,100 in 2004, but according to Tadano the market turned during the year to ‘recovery trend’.

North American demand for new RTs rose substantially in 2004. Overall, the market was up nearly 20% on 2003 to approximately 600 units, and a similar or greater percentage rise this year seems to be on the cards.

Demand has grown particularly sharply for larger machines. More than half of new RTs sold in North America last year were 50 ton capacity or bigger. The 15 ton Galion was once the staple RT workhorse of US construction sites; then the 22 ton Grove took over; then the 30 ton Terex. Today, it is the 60 ton RT that is the favoured machine. Smaller RTs are being replaced by boom trucks – which are getting bigger – and by telescopic handlers, which are selling extremely well these days. The rise of the telehandler means that RTs are unlikely ever to sell in their thousands in the USA again, as they did in the mid-70s.

Last year’s growth in demand in the USA seems to be due to a combination of political and cyclical factors. Two years ago the US government introduced an accelerated depreciation programme, allowing capital equipment owners to depreciate up to 50% of their purchases in the first year, allowing them to write them off sooner. ‘By the end of 2004 that seemed to be having a significant impact,’ says Bob Hixon, North American sales VP for Manitowoc Crane Group. The commercial construction market has picked up and so equipment owners are taking advantage of the accelerated depreciation programme, he says. For many owners, fleet renewal is overdue. ‘There has been an awful long time of down market when people weren’t buying anything, Hixon adds.

After four years of the market being down, the manufacturers welcome the upturn. Order books are now filling up.

‘It is encouraging to us that our dealer network is now back into the mode of placing advance stock orders with us, for their rental fleets and for retail,’ Hixon says.

However, increased demand for RTs is also causing problems with sourcing components. The steel shortage has been well documented. Also hard to get are large tyres, sized 20.5 or bigger. ‘Tyres, steel, and cylinders are probably our three biggest issues,’ says Link-Belt product manager Rick Curnutte. ‘The bigger the tyre, the harder the problem,’ says Terex Cranes vice president Craig Lichty.

As with steel, demand from China has led to shortages of steel cord, natural rubber, and other raw materials for tyre producers. A 14% rise in tyre demand from the US military is also cited as a factor contributing to shortages.

Benoit Chenille, marketing manager of tyre producer Michelin Earthmover UK, says that tyre supply problems are simply the result of excessive demand since the beginning of 2004. ‘At a world level, Caterpillar, for example, didn’t expect to sell so many machines in 2004,’ he says. He denies, however, that tyre producers were caught by surprise by the upsurge in demand, and he says that the industry is now ‘adjusting capacity’ to meet demand.

According to reports, some heavy equipment manufacturers have seen their tyre prices rise 20%. Chenille says that such a large rise sounds unlikely, but confirms that prices have indeed risen as a result of the increased cost
of raw materials.

The supplier issues are impacting on lead times. Link-Belt is quoting three to five months, depending on model. Terex is quoting six months or more. Terex has not been helped by a strike at its Waverley, Iowa plant by United Auto Workers that began in February, and at time of writing had been running for three weeks.

Lichty believes that the rise in demand, and the difficulties on the supply side, is good news for large fleet owners. ‘It increases the value of their fleets,’ he says. With contractors finding it not so easy to pick up new RTs straight from dealer yards just as they needed them, like they could in the past, they are turning instead to the used equipment market. This is enabling the big rental companies to trade out their older machines and replace them with new ones. Although the prices of new machines has gone up, with manufacturers citing steel surcharges as the prime reason, sale prices achieved on used machines has often risen too.

The price increases has worked in the favour of Tadano, the dominant importer of RTs in the North American market. Tadano cranes have always been higher priced than US-built cranes from Terex, Grove or Link-Belt. Tadano has shown no desire to compete with the domestic manufacturers on price, but has still been able to carve itself a place in the market. Today, though, with US manufactures raising their prices, Tadano’s price differential is not so large. There is still a significant premium to pay, however.

According to Ron Dogotch, vice president of Tadano America, a Tadano crane (depending on model type) might be 20% more expensive than the competing Grove model and 40% more expensive than the Terex. Today it is closer to 10% more expensive than the Grove and 30% higher than the Terex.

Dogotch says that despite the fact that the market declined in 2003, Tadano America’s sales were up 70%. In 2004, with a 20% growth in the market, its sales rose 40%. Tadano does particularly well in Canada, where it is represented by Sterling Crane, the country’s largest crane rental company.

Dogotch says that Tadano was prepared for the market improvement in North America, but still says: ‘I can’t get my hands on enough cranes’. He adds: ‘If I had the cranes, I’d be selling more.’

But it is Grove that is once again the North American market leader, both for hydraulic cranes in general, as well as RTs in particular. Hixon says that Grove took 49% of the RT market in 2004, turning around ground lost to Terex and its pricing strategy in the late 1990s.

Despite the lead times being quoted by manufacturers, Craig Lichty does not see any scope for a fifth player to enter the North American RT market. ‘I don’t think there’s room for anyone else to come in with the market under 1,000 units,’ he says.

Elsewhere in the world, Grove, Tadano and Terex Italia all report export success in the Middle East. In Europe the main RT market is Italy. As previously reported, demand for new RTs fell back from the 2003 peak of 230 units to around 175 in 2004.

At Conexpo last month Grove displayed its new RT 875E, the model that now completes its E series of rough terrains. Grove’s RT family now has seven models, from 25 US ton capacity up to 130 US tons.

‘We’ve worked very hard on our rough terrain crane lines over the past few years,’ says David Birkhauser, senior vice president for North American sales. ‘Our E Series line is now complete and the response from the market has been excellent. These units are proving popular not only in North America, but also Latin America, Europe, and Asia.’

The RT 875E is rated at 75 US tons (68t). It has a four-section full-power boom that extends from 12.6m to 39m (41ft to 128ft). An optional offsettable lattice swingaway extension adds 10.1m to 17m (33ft to 56ft) of reach. Maximum available tip height (including jib and inserts) is 70.6m (232ft).

It is powered by a 179kW (240hp) electronically controlled Cummins diesel engine. Overall width is 3.3m, overall height is 3.7m, and it is 15.5m long. Gross vehicle weight is 48.7t (53.6 US tons) when rigged in full working configuration. Counterweight, auxiliary hoist and swingaway jib can be removed to reduce weight for transportation. It also has a tilting cab, which Grove says improves operator comfort and visibility.

A feature of the Grove E series is the use of the European-style Megaform shaped boom instead of the trapezoidal shape of the previous models. Terex also looked at using rounded-profile European booms on its RTs some years ago, taking booms from its PPM operation in France. At that time, it was felt that the US market would resist such an innovation. Today, Craig Lichty reveals, such discussions have been revived. ‘We are looking seriously at putting Demag booms on our RTs,’ he says.

New from Link-Belt at Conexpo was the RTC-8060-II, rated at 60 US tons (54t). This crane has the new style formed boom, rather than the old BOSS diamond-embossed box boom, with Teflon wear pads that automatically lubricate the boom sections. As a result no boom grease or regular maintenance is required.

The full power, quick reeve, four-section boom extends from 38ft to 115ft (11.6m to 35.0m). Adding a 35ft/58ft (10.7m/17.7m) two-piece offsettable fly jib gives for a maximum tip height of 180ft (54.9m). Both fly options offset to four positions each:
0, 15, 30, and 45 degrees.

Power comes from a 225hp (168kW) Caterpillar diesel engine, with a Spicer six-speed power shift transmission. Fully rigged transport weight is less than 90,000 lbs (40.8t).

For improved comfort, the RTC-8060-II has a new operator’s cab and control panels. The windscreen is curved and larger than before, for increased visibility. The door size has been increased and the arm lifts up to make it easier to get in and out. All gauges and switches have been placed in the operator’s forward line of sight, and encased in rubber to protect against dust and moisture. Fuses and relays are now located inside the cab heater compartment.

The fully independent rear 4-Link suspension reduces ‘bouncing’ at medium speeds and improves handling, manoeuvrability and turning radius in both on and off the road conditions, Link-Belt claims.
To even further reduce the “bounce” associated with all RTs, Link-Belt’s patented Hydro-gas Ride suspension system is available as an option.

The CALC (Confined Area Lifting Capacities) system provides three outrigger positions (fully extended, intermediate and fully retracted), which allows operators to work in confined work areas.

Link-Belt has also renamed its RTC-8070 as the RTC-8075 and upgraded its base rating from 70 to 75 US ton (68t). New load charts, computer chip for the rated capacity limiter and identification stickers are available from distributors for owners of RTC-8070 models.

From Japan, Tadano has developed the GR-300EX, a 30t class RT designed for the global market. Launched in January, the GR-300EX has a four-section full-power boom that extends from 9.7m to 31m. With a 7.2m/12.8m swing-away extension, maximum hook height is approximately 45m.

Power comes from a six cylinder 129kW (175hp) Cummins engine. With an electronically controlled, fully automatic transmission with torque converter and eight forward/two reverse gears, this machine reaches speeds of nearly 50km/h.

In North America this crane is called the TR-300XL-4, and was exhibited by Tadano at Conexpo last month. The ‘dash 4’ signifies that it is the fourth generation Tadano RT series since they were first introduced to North America in 1986. This model now completes the ‘dash 4’ line up.

Also new from Tadano and shown at Conexpo is the 60 US ton rated TR-600XXL. This is a long boom version of the TR-600XL launched at Conexpo 2002. The new five-section, full power, synchronised telescoping boom extends to 42m (138ft). A bi-fold offsettable lattice jib adds an extra 9.9m or 17.7m. On the standard four-section version, the main boom extends to 34.1m.

Over in Italy, again as previously reported, Locatelli has added a 60 tonner to the top of its RT line. The GRIL 860 is based on the 55t GRIL 855 but has a new chassis, new cab, and a new Caterpillar engine. The full power boom offers a working height of more than 50m.

Terex Italia last year launched the RC 45, which lifts 44t at 2.5m. Unlike the 40t rated A450, the RC45 has a full power boom, extending to 37.4m.