Moscow CTT Fair
CTT 2017 Moscow – Construction fair report
CTT Bauma Moscow 2017 – transformation of the fair as reflection of market transformation.
This year the main event of Russian construction market – Construction Equipment and Technologies (CTT) fair – is conducted under Bauma brand for a second time. 2 years ago, Messe Munich has purchased CTT, and now Russian construction fair is under German operation. The German owners of CTT are quite optimistic. They claim it 5th largest construction fair in the World and expressed the confidence that the fair will be growing in nearest future. 557 exhibitors from 27 countries are participating in the show, the exposition covers about 61,000 sq.m. Show officials expect 21 000 visitors from 60 countries to visit the fair.
My first impression is that the fair is reduced in total size. Instead of two indoor halls, only one is being used. However, the outdoor exposition has remained in same size. Local OEMs have continued their participation, but they have reduced the size of their expositions. This trend is especially obvious in the KAMAZ and GAZ Group stands. KAMAZ has concentrated on the dump trucks with a new cabin, developed together with Mercedes. Also, OEM has presented Cummins engines, made on their Joint Venture Cummins-Kama. There were 4- and 6-cylinder B-engines, and new 9 liters ISL engines. Although they are shipped mostly to Rostselmash AG combines, construction applications are also possible.
Cummins-Kama for last 2 years has decreased its engine output, but keeps its production stably above 10 thousand units/year and expect that this year it will be increased.
GAZ Group has shown its extended range of Ural-Next trucks, GAZelle Next LCVs, and Euro-5 YAMZ engine.
Another significant expositions belonged to UMG brand (which combined Exmash Group, making excavators, and DST Ural – dozers producer) and UVZ corporation, including Chelyabinsk Uraltrack. Uralvagonzavod (UVZ) is a Russian largest maker of military tanks. However, on this exhibition the plant has shown new wheel and crawler excavators, powered by 140 kWt YAMZ engine. Mass production of these machines is planned for 2018. OEM is going to equip their excavator by the component, all made in Russia, as a part of import substitution program.
Techincom company was known as dealer of various machinery. However, on this fair the company has presented all-terrain floating crawler with 5-ton cargo capacity. The machine is produced on their own production plant in Ekaterinburg. Expected production capacity is 60 crawlers/year. This, according to OEM’s estimation should fulfil the demand from local oil&gas companies.
Major Russian construction machinery OEM – Chetra – this year do not participate on the fair. This can be explained by the fact that last year this company has experienced financial difficulties, and even had to suspend production and dismiss part of the personnel. But, according to the last information from the field, with the State assistance and market recovery, OEM has restored operational activity and returning the personnel back. Till 2020 Chetra plans to establish production output on the level of 1000 units of construction machinery/year and take 30% or Russian market.
Some interesting innovations were introduced on the fair. Abovementioned dozer maker DST-Ural has made floating cable-layer. The machine consists of 2 parts. Floating unit with the operator and diesel engine is one part of it. Another part is a crawler with sensors, cameras and working tools, connected with upper part by hydraulic hoses, and operating on the bottom. The machine could lay the cables via water depths up to 40 meters. And when going ashore, these 2 parts connect into the whole machine. Another interesting machine is a mini-excavator, shown by Chelyabinsk Drilling Aggregate company under “Strong” brand. The price for hydraulic excavator starts from 10 000 Euro for a wheel excavator with 0,04 cubic meter reverse shovel. Crawler models cost more.
The presence of foreign/international companies reflects current political situation on the World. Some countries decrease or eliminate their presence, but some have extended it.
The Chinese delegation has increased its participation and now is the second largest in the fair, after Germany. Large machinery was presented by Shantui, Lovol, Shehwa, LiuGong, SDLG and other – by the Chinese OEMs and local distributors. LGMG has introduced a dump truck with 76 tons of gross weight. This truck can compete to Belarussian BelAZ and local Tonar (if the reliability of the vehicle will be on the acceptable level). FAWDE has shown 36 kWt diesel genset on its stand. Probably, the company is going to target Russian gensest market. On top of it, there was a large walkway indoors, with the stands of Chinese companies around. All sort of a components, parts, filters and so on were presented here.
Traditionally, big squares have been taken by German and Swiss companies such as Wirtgen Group, Liebherr, Putzmeister, etc. German companies have been optimistic about Russian market. During the fair opening, the German Engineering Association representative Johan Sallen announced, that after 6% fall in 2016, during Q1 2017 German exports to Russia increased by 20%. According to the statement of same person, Russia is in top 10 of German export markets.
Japanese manufacturers, such as Hitachi, Komatsu, Sumitomo, were presented by their local dealers/distributors. Also, the dealers showed production from their local facilities: Hitachi and Komatsu have their own machinery assembly plants here.
US companies did not participate in the fair. The only machinery with US brand presented, was John Deere, which was shown by its local distributor. Only exception, I’ve noticed – is a small stand of Cummins, arranged by the local associate. There were mostly filters, belts and other small items. Such absence of US companies was in contrast with another event – Saint-Petersburg Economical Forum, which took place at the same time. At that forum US delegation was largest in number.
JCB was lost now despite a continuous presence in recent fairs. No other British companies were noticed as well.
Turkish companies were present, but were small in number and in size. Hidromek stand with one grader and 2 front loaders was largest among Turkish companies. It’s clear that the level of Turkish presence on Russian market, which was few years ago, cannot be restored fast.
Also noteworthy was the fact that foreign truck OEMs (Volvo, Scania, Mercedes, Renault) were absent on this fair. Volvo has limited its presence by the stand with its industrial engine. One reason might be a change in the fair policies by the new exhibition owners. At the same time, I’ve noticed that a large number of small companies, selling parts, filters and other small items, whose were absent on several last years’ events, have returned to the fair.
Separate thanks need to be said to the new fair operators for improving order on the event. No molestful promoters with useless leaflets, no screamy shows. And the quality of food courts has improved significantly.
Generally speaking, the situation on the fair reflects the situation on the Russian construction market. It is under pressure. Financial problems and lack of demand turned the growth into the hard tack. However, as it appears, the market is developing under pressure. Critical period was passed with the State support. And looks like, the money are coming back to Russia. Abovementioned St-Petersburg Economical Forum has brought 386 investment contracts with total amount of 35Bln US$ - 2 times more than same event last year.