News: Construction

2022-06-25

Komatsu Provides Hybrid CE To Southeast Asia

INDONESIA REPORT
Akihiro Komuro
Akihiro Komuro

Komatsu began introducing hybrid construction equipment in Indonesia this spring. Equipped with an engine and electric motor as the power source, these machines can improve fuel efficiency by 20-30%, compared to conventional machines.

Chinese manufacturers are pushing low-priced construction equipment, and are now rivaling Komatsu, which has a stronghold in Indonesia, in terms of market share. With fuel prices rising sharply, emerging countries are also becoming more environmentally conscious. Komatsu is fending off Chinese competition with its highly fuel-efficient construction equipment and is tapping into demand for decarbonization.

In Indonesia, the largest construction equipment market in Southeast Asia, Komatsu has launched a hybrid hydraulic excavator. Equipped with a hybrid system developed in-house, the excavator’s swing unit is electrically powered. When turning the body, including the arm and driver’s seat, from side to side, the energy generated during deceleration is used to generate electricity, which is stored for future use. The company plans to market the system to nickel mine developers and others, where demand for EV batteries is growing.

Read More»

Show Report: 2022 NEW Environmental Exposition

FAR EAST: JAPAN REPORT

Akihiro Komuro
Akihiro Komuro

Last month, I visited the three-day 2022 NEW Environmental Exposition, an exhibition of environment-related equipment in Tokyo. The show promoted the effective use of resources, new energy and energy reduction, and the utilization of CO2 emission reduction technologies

Source: Official Website

PSR Analysis: The exhibition featured many environment-related devices for waste treatment, demolition, bioplastics, water treatment and purification, heat utilization systems, recycling, and more.

Large equipment such as those that crush and efficiently separate debris mixed with earth, sand, and wood; metal recovery systems from seawater using special fibers, and equipment related to crushing wood, stone, and other materials were eye-catching in variety and size.

Read More»

Volvo CE Pushing Alternative Powertrains

EUROPE REPORT

Emiliano Marzoli
Emiliano Marzoli

Volvo Construction Equipment (Volvo CE) has started testing its prototype “HX04” Hydrogen Fuel-Cell Articulated truck.  Carolina Diez Ferrer, Head of Advanced Engineering Programs at Volvo CE expects that this prototype will “give valuable insights into the opportunities of hydrogen in the energy transformation alongside battery-electric solutions.”

The on-going development of the hauler began in 2018 and experienced partnerships with different Swedish institutions and companies.  Fun fact: The machine is nicknamed “Electric Charlie,” a homage to “Gravel Charlie,” the world’s first Articulated hauler produced by Volvo in 1966. 

Shell has been involved in the project, supplying the Hydrogen refuelling station for Volvo’s test track.  The Volvo HX04 is charged with 12 kg hydrogen in about 7.5 minutes, enabling it to operate for approximately four hours. Fuel cells work by combining hydrogen with oxygen and the resulting chemical reaction produces electricity which powers the machine.

Read More»

2022-05-23

Komatsu Announces Expansion in Brazil

BRAZIL/SOUTH AMERICA REPORT  
Fabio Ferraresi
Fabio Ferraresi

Komatsu announced planned investment of US$ 30 million (R$ 158 M) for a second cycle of production capacity expansion of its Suzano Plant in Brazil. According to Komatsu, production capacity will be increased 26%. Komatsu has invested US$ 20 million (R$ 100 M) during the last three years for 32% capacity expansion and improvements in safety and environmental impact.

Source: M&T Magazine      Read The Article

PSR Analysis: The expansion meets Komatsu and Brazilian CE market growth during the last three years and the forecast for growth in the coming years. Komatsu has been producing strong business in Construction Equipment and especially in mining equipment in Brazil. Komatsu has been emphasizing high value added products in service and after sales. PSR

Fabio Ferraresi is Director-Business Development, South America, for Power Systems Research

2022-03-20

Caterpillar Plans To Stop Production in Russia

RUSSIA REPORT

March 10, 2022—The American company Caterpillar, specializing in construction and mining machines, has suspended work at its plants in Russia because of the situation in Ukraine. Caterpillar said it is donating more than US$ 1 million to the victims of the crisis.

“We are deeply saddened by the tragic events continuing to occur in Ukraine and hope for a peaceful resolution to the crisis. Through the Caterpillar Foundation, we are donating more than $1 million to support both urgent and long-term needs of the Ukraine humanitarian crisis. We are complying with all applicable laws and evolving sanctions, while remaining focused on our employees, dealers and customers. Operations in Russia have become increasingly challenging, including supply chain disruptions and sanctions, and we are suspending operations in our Russian manufacturing facilities” – said in the company statement.

According to the company website, it has a production plant in Tosno (Leningrad region) and a distribution center in Moscow region.

Read The Article

PSR Analysis: Evidently, Cat business in Russia continues, however in reduced size. It’s not possible to maintain production operation with absence of parts. Same reasons were stated in press-release of Hitachi, which has also suspended production in Russia with Cat and Komatsu.   PSR

Maxim Sakov is Market Consultant – Russia Operations, for Power Systems Research

2022-02-20

Union Budget Push To Expand Highways and EVs

INDIA REPORT 
Aditya Kondejkar

The 2022-2023 Budget is focused on building long-term strength using investment as the growth lever while maintaining policy stability and inclusivity. The 35% increased capex outlay, major infrastructure projects like 25,000 km road construction, 100 Cargo terminals, Project GatiShakti, 5G network, optic fiber cable laying and the recent PLI schemes are major positives.

Source: Auto Guide India    Read The Article

 “The blueprint of a digitally enabled, Aatmanirbhar Bharat, coupled with measures that will drive sustainable yet inclusive growth at a rapid pace for the next twenty-five years. These are the bedrock of the proposals announced in the Union Budget 2022-23, as we redefine our economy in a post-pandemic world. Setting the direction for creation of urban fossil fuel free zones, policy for battery swapping and energy as service and incentives for creating a vibrant start-up eco system, India could soon emerge as a fore-runner of green mobility solutions for the world” – Sunjay J Kapur, President ACMA (Automobile component manufacturers association of India)

Read More»

Doosan Bobcat Aims at NA Market with Fully Electric T7X

SOUTH KOREA REPORT

Doosan Bobcat unveiled the world’s first fully electric construction equipment to the global market through CES 2022, the world’s largest technology exhibition.  

Doosan Bobcat held a media day event at the Mandalay Bay Convention Center in Las Vegas to introduce the T7X, which won two CES 2022 Innovation Awards.  

The T7X is the world’s first fully electric construction equipment that eliminates all hydraulic components. It is comparable in performance to existing internal combustion engine equipment and emits no harmful substances. Noise has been greatly reduced to one-tenth the level, and energy efficiency has been maximized. 

Read More»

2022-01-22

North American Rollers 2021 Production: 6,245 Units

DATAPOINT

6,245 units is the estimate by Power Systems Research of the number of rollers to be produced in North America (U.S., Canada and Mexico)  during 2021.

This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.

Market Share:  With 48.5% of total units produced, U.S. based Wacker Neuson leads in production of Rollers in North America.  In second position is Caterpillar’s combined plant totals of 21%; third, is Volvo Construction with 15.5%. 

Export: Collectively, up to 50% worldwide.

Trends: In 2020, production of Rollers in North America dropped 31.5%, but production is expected to rebound 16% in 2021 over 2020.  The decline in 2020 is solely based on COVID-19 related factors that impacted the global supply chain.  There are material shortages (parts/supplies), shipping issues (moving goods is slow paced), material prices increased and workforce matters (due to company shutdowns or can’t find workers).

With supply chain problems gradually being resolved, the 2021 increase is also attributed to the launching and demand for new, more versatile products, along with the stabilization of the overall economy, mostly regarding the housing/construction markets.  The demand for rental machinery is also on the rise.  

Many new models are boasting increased fuel efficiency that are desirable to operate.  Tandem drum vibratory rollers account for nearly half of all compactors produced and sold each year that range from 5-8 metric tons.  Expect the production of rollers in NA to increase an additional 10% by 2025.   PSR

Carol Turner, is Senior Analyst, Global Operations, for Power Systems Research

Global: Recovery Is Strong, but Uneven

GLOBAL REPORT
Yosyf Sheremeta
Yosyf Sheremeta

SUMMARY.  The global economy performed very well in 2021 and continues to recover, along with trade, employment and incomes. But the revival is unbalanced, with regions/countries, businesses and people facing very different economic realities. Recent improvements also conceal structural changes, which means that some sectors, jobs, and technologies will not return to their pre-pandemic trends. Based on the most recent economic developments and trends, Power Systems Research remains somewhat optimistic about the global recovery.

Many of us hoped to be in the post-Covid phase by now, but it is evident that there is no quick way out.  The pandemic has had a profound impact on the world economy, and it will continue to challenge established norms of life and business into the foreseeable future.  As we start the new year, many challenges remain, new and old alike: re-surgency of COVID variants, restrictions on travel, supply chain challenges, shortages of materials/goods, inflation, and employment, as well as renewed geopolitical tensions across many parts of the globe.

Power Systems Research witnessed a strong economic recovery globally in 2021, despite regional differences.  Output in most OECD countries has now either surpassed or is about to reach pre-pandemic levels, but lower-income economies, particularly those where vaccination rates are low, are at risk of being left behind.  Furthermore, the rebound will continue to vary widely among different market segments.  

Global inflation re-surfaced in 2021 and presents a real risk to economic recovery in all regions. The renewed inflationary pressure risks lasting longer than was expected a few months ago.  The surge in retail and wholesale energy costs in late 2021 will undermine economic growth prospects for large parts of Europe and Northeast Asia well into 2022.  Rising food and energy prices already have impact on low-income households in particular. 

Read More»

2021-11-21

Global Economy On the Path To Economic Recovery, Despite Increased Uncertainty

Yosyf Sheremeta
Yosyf Sheremeta

The global economy is on a healthy rebound trend, but issues with supply chain, logistics and the re-surgency of COVID-19 during Q3 2021 remained.  Power Systems Research witnessed a strong economic recovery globally in H1 2021; however, many challenges still remain.  The rebound will continue to vary widely among different regions/countries, but a complete recovery is not expected until the global pandemic is under control.   With some minor changes among regions and market segments globally, our overall forecast from last quarter remains in place, and that is good news to our industry players, OEMs, powertrain, and component suppliers.

The global economic performance last quarter was in line with our initial projections from earlier this year.  As we projected last quarter, we did not expect any rapid economic recovery in H2 2021, however, we continued to witness a steady increase in economic activities.  During the last quarter of 2021 Power Systems Research expects this trend to remain in place.

Government support in the form of fiscal policies and public health management are driving the economic rebound and largely explain variations in performance across countries. With the targeted monetary support to consumers and certain industries, the demand for products and services globally is coming back, and we expect this trend to carry over into Q1 2022.

Read More»