Most of the significant action in the crawler crane segment continues to centre on the larger models. In particular, interest is building in the US where industry is awaiting the allocation of federal stimulus funds into various infrastructure projects. There is also speculation as to the manner in which the funds are rolled out, as it will dictate the number of crane units necessary to carry out the work. Equally, there is wide interest in the type of crawlers that will be available to carry out the jobs.
Construction work will rely to a large extent on existing crane models as 2009 has seen little released in medium to large crawlers from the leading manufacturers. Besides the impact of the economic downturn on research and development investment, there are also indications some manufacturers may hold off such work for the next 18 months as new environmental standards for engines are impending in the US. The more stringent requirements are also expected to be replicated throughout the rest of the world, making it less likely that manufacturers will release new models until they are ready to include the new engines.
Despite a slump in construction activity, some manufacturers and rental companies report reasonable performances in recent months. In results just published for the fiscal year 2008, Kobelco Cranes reports increased sales along with the launch of new models in its crawler crane range. Global net sales increased by nearly 20% over last year (up from JPY71.2bn to JPY85.2bn), with unit sales up 8%, from 850 to 920. The company says this has been achieved, in spite of the weakening market, by sales of newly-launched large crawler cranes, a steady shipment of backlog orders and focused effort in certain markets such as North America, as well as accelerating development of new models, and reducing costs.
Kobelco’s latest new large-sized crawler crane, the 400t-capacity SL4500, was launched at Intermat in Paris, and the first machine was presented to Inverness-based crawler crane specialist Weldex. This was is in addition to four 550t-capacity SL6000 cranes which Weldex have taken over the past two years. They are in operation in the UK and elsewhere on a number of large-scale energy and infrastructure projects.
The SL4500 was the largest new crane to be launched at Intermat and, according to Kobelco, as one of the most prominent exhibits at the show, drew much attention. The crane’s first assignments will be on wind farm projects in North Wales and Scotland. The new 400t SL4500 also attracted many enquiries. Sales and marketing manager Jos Verhulst comments: “It was an ideal platform for the introduction of this brand new model, and we had an encouraging attendance by many established customers and friends, and new enquiries as well from Europe and Africa.”
The manufacturer also handed over a 60t CKE600 to the Belgian specialist joint contractors Benelmat and MBG (both part of the Vinci Group) at Intermat. This crane will go to work initially on the EUR680m Liefkenshoek Tunnel underneath the canal dock in Antwerp, Netherlands. Another crane, a 135t CKE1350, destined for international oil field and energy industry contractor Saipem, was also shown at Intermat.
Benelmat and MBG’s new 60t CKE600, which was on display at Intermat, is equipped with triple grouser tractor-type tracks. The company already owns one other CKE600 and a 135t CKE1350, both of which, they say, have performed utterly reliably during their first 10,000 hours, despite extensive on-site travelling. They praised the smoothness of operational control, reliability and low cost of operation. Benelmat also confirmed a further order for an 80t capacity CKE800. The new CKE600 will start work immediately on the new Liefkenshoek Railway Tunnel project (Liefkenshoekspoorwegtunnel) beneath the canal dock in Antwerp. Total project value is EUR680m over 35 years, including maintenance.
Another Kobelco model launched in Europe last year is the 110t capacity CKE 1100. The first unit was sold to SETH in Portugal (part of Danish Hoygaard group), and the second unit has been delivered recently to Q-Plant Hire in the UK. Q-Plant Hire has invested around £2.5m in new Kobelco crawler cranes, having recently taken delivery of six new cranes, including four 80t CKE800s, and another 135t CKE1350. The bulk of its 30-strong specialist crawler crane fleet is now Kobelco.
For Manitowoc, global product manager Mike Wood says the 2,300t capacity crawler crane, Model 31000, is generating the most interest. The crane is still in production, although officially released last year. He comments: “It looks like it will be very successful; it is designed for these heavy lifts at reach and height. For a lot of power plant jobs, nuclear work, refineries and anything on power plants with coal cleansing of exhaust: it will match this machine’s specific capacities.”
He adds: “Right now the larger cranes, 300 tonners and up, are most successful, with power plant and energy work; refinery work, which is ongoing, any model from the 2250 up. We’ve also had some success with the 14000 we have launched, in this case for infrastructure investment-based projects like bridge jobs. We are really fortunate in this regard to have the right cranes to suit demand.”
The 31000 is the largest capacity crawler crane Manitowoc has ever designed or built. The single-boom Model 31000 comes in a variety of configurations. The main boom ranges from 55m to 105m. Fixed jibs range from 24m to 42m, with a maximum combination of 95m of main boom and 24m jib. Luffing jib configurations range from 36m to 102m. Maximum combination is 90m main boom and 102m luffing jib. It employs an innovative lift-enhancing mechanism, which eliminates the need for a counterweight wagon. This feature, called the VPC (the Variable Position Counterweight) never touches the ground and extends or retracts as needed by the crane’s lift. It also offers four trunnion-mounted crawlers, which allow the crane to oscillate during travel and provide even weight distribution during lifts. Dual 600hp Cummins engines provide ample power for multifunction operation. The swing assembly is mounted on a roller path system, rather than the typical turntable bearing. This system helps maximise load distribution and decrease ground bearing pressure.
South Carolina-based crane hirer Bulldog Erectors president Bob Shirey, whose company made the first order for the 31000, says he was buying the crane because of confidence in Manitowoc and that he is selling his customers confidence in his company and the products it places on a project site. A major drawcard was that it fills a gap in the market for the size of machine and capabilities. Shirey also cites an advantage being that the crane is built by a major worldwide manufacturer, with the associated access to product support and access to parts replacements.
Demand for additional 31000 units will be somewhat dependent upon the pace at which projects are let, probably increasing a great deal if project lettings occur simultaneously. But need for additional units may not occur if project lettings are spaced out. Shirey says: “I think if the work is released concurrently, the answer is yes, there will be demand for more; if the work is released in a consecutive order, I would say, maybe not.”
Other very specific reasons for the purchase were the ability of the 31000 to pick and carry of all rated loads in any of the crane’s boom configurations; to walk without having to disassemble any equipment or counterweight; the VPC system; the fact no constant support crane is required for the 31000 once it is erected; and only one operator in one location is necessary, as opposed to comparable lifting equipment.
Earlier this year Link-Belt finished capacity and luffing configuration tests on its 500t Link-Belt 548. However, Pat Collins, senior product manager for lattice boom cranes at Link-Belt, says the 298 model is the biggest success this year. He puts this down to the spec-on-spec comparison with competing models. The crane has a jib length of 18.3m+9.1m through 91.4m+27.4m. The conventional boom becomes a luffing boom, with a maximum luffing boom of 54.86m and luffing jib of 60.96m. Main transport load under 88,000lbs includes the mast and all ropes. Collins says: “Another thing we do is keep the live mast working within the tailspin of the machine; this allows it a nice tight working envelope”.
Midway through May, Collins says Link-Belt was seeing a downturn that had been evident for about 90 days. He says the areas that remain strong are the same as would be the case during boom times, citing in particular the US the East Coast, South Central and Southwest regions as home to some of the better markets.
Some of Link-Belt’s smaller model crawlers, including its 108, 138 and 208 size rigs, are expected to see more demand as flagged infrastructure investment comes through, particularly bridge construction work. Collins adds: “There’s more happening for the larger models; wind farm construction is picking up, and a lot of people are waiting for the major investors to give the green light on developments that are in the planning stages”.
He says Link-Belt does have plans for new models, although it was too early to elaborate on any details. However, he says those models would incorporate new Tier IV engines, which will be required by the Environmental Protection Agency in new models sold from 2011.
Introducing the US federal regulated mandate for engines will usher in more stringent pollution controls for all off-road vehicles, although do little in terms of added performance for end users. Collins says the change represents a major engineering challenge which would necessarily divert manufacturer resources: “Because new models have to be introduced with that in mind, it will create a bit of a deadband in new product announcement from now until the end of 2010. I’d be really surprised if anybody comes out in 2011 with anything too big. I believe there is a similar time schedule for European standards.”
Announcing first quarter results for 2009, Essex Crane CEO Ron Schad explained the company’s strategic focus on big crawlers. Schad says that as funding from the US federal stimulus package is only now being appropriated “to discreet projects”, he predicts job starts will be months away.
In a statement from Essex, Schad says: “In the latter part of the first quarter of 2009, we started to experience a pick up in quoting activity to levels that were experienced in the same period of 2008. We anticipate an increase in bookings in the second half of 2009 as recent inquiry and quoting activity has led us to believe that orders are close to being released for infrastructure projects. This is specifically related to heavy highway work and other projects included in the Federal Stimulus Bill that targets many of our end markets.”
Speaking to analysts as the results were announced, Schad says: “the Act has allocated approximately USD50 billion in funding for transportation related projects of which a significant portion will be for a large bridge construction that will demand the use of crawler cranes… At this point in time, approximately 90% of the specified and approved projects are in the planning stages, which we anticipate will result in an increase in the level of firm orders placed for crawler cranes later this year. We are actively engaged in monitoring and/or quoting on a significant number of these situations and believe that given the size of our fleet, we are well positioned to meaningfully participate in the rewards.”
The slowdown in the booking environment means Essex “feels it is prudent to temporarily slow down the purchase of new cranes. Accordingly, while we took delivery of USD8.6m of new cranes and attachments in the first quarter of 2009 that had been ordered in 2008 and earlier, we are re-evaluating significant further crane investments in 2009 until we see improving demand in our end markets.”
Asked whether there were any end markets that were particularly strong, and about stimulus dollar flows, Schad replies: “All through last year, although we had a fabulous 2008, we were somewhat disappointed in our public works projects, infrastructure-related projects driven by federal and state dollars (primarily the heavy highway bridge jobs) and many of the civil works projects on levy construction, dam and water construction water treatment facilities. Those types of projects were not as robust as we had expected and I will say that early indications are that the stimulus funds will help at least get those projects back on track.
“So although I won’t say they are extremely strong they’re improving over last year. And that’s a market we’re very hopeful of continuing to move along. Additionally, the wind power market slowed down towards the end of last year, primarily caused by credit concerns and availability of credit for those projects. Early indications are that that’s being resolved.”
