Volvo display new FL Narrow Track

A number of luminaries from the petrochemical industry in the UK were amongst the guests at a seminar at the Volvo Trucks headquarters in Warwick. The seminar involved the launch of the new Volvo FL Narrow Track tanker, with the guests being able to view them alongside an FE 6x2 rear-steer tanker. The seminar, whilst focussing on the Narrow Track's specifications, also demonstrated how Volvo can work with their customers on a number of issues. There are a few variables, such as using Dynafleet telematics and Volvo Service Point Online, which can be customised, allowing the customer to reduce their fuel usage and manage the vehicle effectively.

The FL Narrow Track fuel tanker features a payload of 11,000 litres, and the FL Narrow Track gas tanker can hold 6200 Kg of Liquid Propane Gas (LPG). The size of these payloads, and the subsequently less frequent need to reload, mean that they are able to be effective alternatives to a GVW truck, or a Scania P94 fuel truck.

The FL Narrow Track measures 2.1 metres in width over the doors, and 2.3 metres over the mudwings. In order to ensure that the vehicle can be serviced by Volvo's network of dealerships, without recourse to special parts, there have been two modifications: the mirror arms have been made narrower, and the rear wheels and tyres have been replaced by super singles on 8 stud steel wheels. It can also be equipped with Volvo's I-Sync, the automated transmission.

The Narrow Track FL is suited to applications which aren't reliant upon axle loading tolerance, as it is 5.8 tonnes at front and 10.3 rear. Another vehicle that was displayed was the 6x2, which featured a rear-steer tag-axle that is operated by hydraulics, and was there to draw attention to a new rental offer by Volvo and Haartz Tanker Rentals. The offer is a Volvo FE 340 with a capacity of 20,000 litres, replete with pumping equipment, for £804 per week, with a minimum term of 12 months.

Iveco emphasises alternative fuels.

Iveco, alongside other truck manufacturers such as Scania UK, is following a policy which emphasises natural gas and electric power, as it concentrates upon reducing carbon dioxide emissions.

Iveco already produce engines which run on natural gas, in this case compressed biomethane or compressed natural gas, and many customers already utilise this, including Coca Cola and Tesco, which recently ordered 795 vans, including 25 powered by natural gas. Mainland Europe has embraced Iveco's EcoDaily Electric, an electric powered model available in either a 3.5 tonne or 5.2 tonne version. These vehicles use a three-phase traction motor, which is linked to a DC/AC inverter. The two versions deliver power of 30 kW continuous and and 40 kW continuous respectively. The components and the batteries are located either in the engine space or the side chassis, which means that load space is not affected, with Iveco saying, At the end of the vehicle's life, recycling is not compromised; the Zebra batteries are completely recyclable.

Roadtransport.com's group technical editor Colin Barnett test drove an EcoDaily Electric 3.5 tonne vehicle, and said, Negotiating the streets of London was slightly more challenging thanks to left-hand drive, but in every other respect the Daily Electric was simplicity to drive. The steering is not assisted at standstill to save battery life, but comes to life as soon as you move. In normal mode, progress up to the limited 43mph maximum is brisk, surprisingly so for other road users.

Caterpillar expands facility

Caterpillar has announced that an expansion is imminent at the premises in Sandford, North Carolina. A new building measuring 270,000 square feet will be constructed, and is intended to house both logistics and robotic welding fabrication. Caterpillar, famous for their backhoe loaders and mini diggers for sale, stated that the new premises will help them to meet growing demands for equipment. Construction will commence in September, and is projected to be completed in the summer of 2011. The facility will provide employment for a further 325 members of staff over the course of the next 5 years.

Caterpillar also announced the release of seven new versions of the series 3 compact loaders, which encompass multi-terrain loaders and skid steer loaders. The series 3 models have been adapted from the series 2 designs, but with improvement which render them, even more capable, more reliable, safer and easier to operate.

Some of the new elements include a redesigned version of the 'dead-engine lower valve', which allows the arms to be easily lowered if the engine has died, and the electronic control module being moved to a more accessible position in the rear. The engines have also been bettered, with Cat C3.4 DIT engines installed, which delivers a 25 percent increase on the previous model. Hydraulic capabilities have also been increased, by 40 percent, and Caterpillar say that, significantly improve the capability and efficiency of the 242B3 and 257B3 when handling standard-flow work tools, such as brush cutters, power box rakes and trenchers.

Cadzow acquire new Mercedes-Benz Actros Titan

Cadzow Heavy Haulage, an abnormal load specialist, has acquired a new vehicle; a huge Mercedes-Benz Actros Titan. The vehicle was made at the Mercedes-Benz facility in Wörth, and features a customised 6x4 tractor unit, equipped with a V8 engine that delivers 609 hp. It was subsequently converted into an 8x4 version at the Titan Spezialfahrzeugbau GmbH.

In order to prepare the vehicle for the operations that it will be required to undertake, the chassis was significantly reinforced by Titan, and the air tanks, batteries, exhaust stack and transmission coolers were moved in order to maximise space. It also features a 900-litre fuel tank.

Cadzow Heavy Haulage is a Lanarkshire based firm, and this is the fourth Mercedes-Benz Actros Titan that they will have acquired, and they were supplied by Western Commercial, a dealer which also deals with tipper trucks for sale. Managing Director Jim Macauley said, Our Mercedes-Benz Titans have done us proud since we bought our first two from Western Commercial in 2003. They’ve always been man enough for the job and very reliable, our only outlays having been on the kind of wear and tear items you would expect. There’s no doubt that Mercedes-Benz makes a good heavy truck, which explains why most of the guys in this very specialised business choose to run them.

The vehicle features a luxurious long distance sleeper cab, which features uspended seats, air-conditioning, a refrigerator and a blue-tooth compliant CD-radio player. Jim Macauley commented, Unsurprisingly, our driver Campbell Stewart is over the moon with his new truck.

Potain cranes employed in major Italian development

Trento, a city in the North of Italy, is currently witnessing the construction of a new multi-purpose development called La Albere, and it is utilising eleven Potain cranes, with two further cranes scheduled for arrival in August.

La Albere is the largest development in the Trento province, and Sabino Riefoli, the sales and marketing support manager for Manitowoc in Italy, said, The three-year project will completely transform this region, creating a new district of homes and businesses.

The cranes range in capacity from 6 to 12 tonnes, and can operate at heights of up to 61 metres. The collection features two MDT 218 A models, a flat top MDT 98 model, and eight MDT 178 models. They are employed in the transport of various building materials, and will continue working until the completion of the development, scheduled for 2012. Colombo Costruzioni, the primary contractor, is utilising Potain's anti-collision programme, Top Tracing, and so the cranes are set up in overlapping operational areas. A few of the cranes are owned by Colombo Construzioni, whilst the remainder have been hired from GB Manci Noleggi.

The development spans over 11 hectares of a former Michelin factory site, and will provide 30,000 square metres of office and retail space, 300 residential apartments, 2000 parking spaces, a science museum, 5000 hectares of sculpted parkland and numerous piazzas. It was designed by architect Renzo Piano, and he has incorporated into the design a number of environmentally friendly features.

Suped-up John Deere runs on alcohol

Waverly's Bremer County fair saw an interesting sight this year; a suped-up John Deere tractor. John Storjohann's tractor looks like John Deere 4560, a 1980's made diesel model. However, Storjohann has tinkered with his vehicle, creating a tractor that has a 6-cylinder engine that is triple turbo charged and runs on burning alcohol, delivering 2500 hp. ITs power is such that it can tow a sled, weighing 40,000 lbs., over 300 feet per 10 seconds.

John Strojohann is a retired John Deere engineer, and he hasn't been able to leave his love of engineering behind him; in fact, for him, its the ideal hobby, saying, You meet a lot of good folks and I love the technical challenge.

He goes on to say, I made my living working on diesel engines. I had enough grease, dirt and soot thrown on me. I want to play with alcohol.

For more than three decades he headed the Applied Mechanics Department, designing and redesigning, ironing out problems. Discussing his new hobby, he says, It was curiosity more than anything. I designed it. I built it. I paid for it. Now, I'm going to drive it. If your tires get a bite, it will put your fanny in the seat.

Soon Storjohann had earned a reputation within the National Tractor Pullers Association, and began to be wary of his creations, with fellow competitor Gary Wipf saying, I'd say Don has one of the best put together super stocks out there.

Storjohann's vehicle is called Just Off Warranty, and he built it from scratch, using his 32 years of experience working for farm trader John Deere, as well as his Master's degree in Engineering. The fuel system was designed completely by him, and he says, I have a complete mathematical model of my fuel system in my head. You could steal it and I could build another one.

Unfortunately, at the fair, Storjohann could only come fifth in the competition that he won in 2008. My turbos wouldn't come up on me, he said, Now I have data and know what to look for, and we'll try it again.

Gary Wipf pulled 317 feet in 10 seconds to take the first prize. However, the loss has not dented 72 year old Storjohann's enthusiasm for tractor pulling, and is supported by his family and circle of friends. He goes to up to 20 events during the pull season, and he is assisted by Eleanor, his wife, and also his nephews, cousins and sundry other relatives.

This is our together time, says Eleanor, I helped him put it (tractor) together. I know every nut and bolt in that thing.

Often up to 60 memebers of the family will be supporting StorJohann at a given event, with his brother in law Butch Franzen saying, It's wonderful with all the family. It keeps us close.

Storjohann spends a lot on his hobby, with each event costing around $2000, although his vehicle is worth at least $100,000. Storjohann is unrepentant, saying, John Deere gave me the best job in the world, making an excellent living. I worked damn hard for it. I'm going to spend it ... you can't take it with you.

Southwark council goes green in its choice of vehicles

The council for the London borough of Southwark have decided to invest in a fleet of 'green' vehicles. 47 new Mercedes-Benz Sprinters have been chosen by Southwark council, who were looking for the most environmentally friendly vehicles that they could find. The new fleet are all powered by engines which meet both Euro 5 emissions regulations, as well as the criteria for being an Enhanced Environmentally friendly Vehicle (EEV).

The vehicles were sourced through London Hire, a firm which supplies many vehicles, including from Scania UK, to the majority of London borough's, as well as to a variety of other public sector institutions.

They are also equipped with Mercedes's ECO-Start system, which automatically cuts the engine when the vehicle is still, thus reducing fuel consumption, emissions and wastage. An example of how it works would be stopping at red lights; the driver just has to go into neutral and release the clutch. After two seconds, the ECO-start system will turn off the engine. When the lights turn green, simply depress the clutch and the engine will immediately revive.

Mathew Trott, the business unit manager for Southwark council, said, Choosing vehicles that would cause the lowest possible impact on the local and global environment was right at the top of our list of priorities when we made this decision. We looked at several options - not many could offer Euro 5 engines, even fewer could provide vehicles to EEV specification, and only Mercedes-Benz could combine those two features with the ECO-Start system. Of course we also had to be satisfied that the vans would be 'fit for purpose', and would provide a reliable and efficient service to our council tax payers. The Sprinters are extremely well built and very cost-effective, as well as providing a comfortable and safe working environment for our staff.

Whale Tankers hit Truckfest

This year's Truckfest Scotland saw a particularly good impression made by Whale Tankers. It was the first time that Whale Tankers had been present at the Truckfest, and people visiting the Volvo truck stand had the opportunity to explore their rigid vacuum tankers. The VacuumWhale is a 3300 gallon tanker, the only tanker at the exhibit, at was liveried in the colours of Glasgow's Waste Water Services.

Rhona Paterson, the total solutions executive for Volvo truck trader UK in the North, said, To many in the industry, Volvo Truck & Bus included, Whale represents the very best when it comes to product quality for specialist vehicles of this type. We were delighted to be able to feature the only tanker of its kind on one of our chassis at this year's Truckfest - the popular FE 6 x 4 26-tonne GVW chassis with day cab - and we received many favourable comments about the unit and its prominent appearance. It certainly helped Volvo's truck display stand out from the crowd.

Gordon McShannock, the Managing Director of Waste Water Services, who continues to utilise Whale Tankers, said, Not only is the best that money can buy, so too is Whale's service and support back-up. They do all of our servicing, maintenance and tank testing, and we know that there are two highly-qualified and dedicated service engineers just a phone call away should we need them. We are now looking forward to the new vehicle helping us promote our own quality service to both current and future customers.

Whale Tankers' Area Sales manager for Scotland, Alan Steel, said, As Gordon's comments clearly demonstrate, Whale prides itself on the outstanding levels of service support and back-up it has the capability of offering, not just north of the border but UK wide.

Transport company criticises banks during the recession

A transport company from Billingham has criticised the banking sector for their dearth of support during the recession, despite riding the downturn and emerging as an even more robust business. Nicholson's Transport was moved to sell assets in order to survive and grow, as the banks offered no support, but the gutsy move paid dividends as they reversed the trend in the rest of the logistics industry by enticing new clients as well as garnering some substantial contracts. They took the decision to sell company owned property and then lease it back, in order to fund the difficult times. Dave Nicholson, the owner and founder of the company, was dismayed by the attitude of the banks during the darkest time for British businesses for more than a generation. He agrees with Chancellor George Osborne, who declared that banks had an obligation to lend to small businesses. Nicholson said:

This business has been through three recessions, but this one was so different in that the banks just shut up shop – despite what their PR teams were saying. We had been planning to restructure since 2007 and needed funding to achieve that, but the banks were extremely reluctant to lend against property and certainly didn’t want to hear from logistics firms. We have delivered the restructure despite the banks saying we wouldn’t survive past last December. They didn’t want to understand our strategy for moving forward, but we have achieved that regardless and paid back all bank borrowings. The recession has had a devastating impact on the logistics sector, with many firms going under, but there was no way we were going to roll over. We have actually come out far stronger, with each of our companies independent and more client focused.

As a result of their restructuring, the Nicholson Group now has transport and logistics enterprises in Doncaster and on Teesside, specialising in storage and Hiab cranes respectively. Nicholson feels he has taken many lesson from the recession, saying, The main lesson we have learned is to not have too many financial eggs in one basket. In future, we won’t have a situation where we rely too much on one funder, or indeed rely on banks at all. Instead, we are spreading our risks and improving our relationships with different banks, and looking at alternative funding methods.

Crossroads complete acquisition of Hartshorne Group

The has been an acquisition in West Yorkshire, as Crossroads Truck & Bus completed the takeover of Hartshorne Group, a Midlands-based company which, like Crossroads, are a truck trader, specifically for Volvo.

The two businesses will continue operate with their own identities, running as individual companies, but within the same group. Martin Cronin, the Managing Director of Crossroads, said:

The addition of Hartshorne to the Group will give us greater opportunity to add value to customer's operations by providing consistency and continuity across the key distribution centres of the Midlands and Yorkshire. We believe, that by working together, we can create even more opportunities for our employees, provide even greater customer service locally and build for the long-term future of both businesses.

Between the two companies, they employ nearly 1000 members of staff across 20 separate Volvo dealerships, and produce a turnover of £200 million per year. Their pedigree is shown in Crossroads' status as former holder of the Motor transport Dealer of the Year award.

JCB hits 100,000 excavators in India

JCB is one of largest construction equipment manufacturers in the world, producing backhoe loaders, excavators, compactors, skid steer loaders and mini diggers for sale across the world. In fact JCB India has reached landmark by recently producing the 100,000 excavator that they have manufactured in India.

The milestone vehicle was unveiled by visiting dignitaries, including: Kamal Nath, the Minister for Road Transport and Highways; Vince Cable, the British Secretary of State for Business and Vipin Sondhi, the chief executive officer of JCB India Ltd. Kamal Nath stressed that India's vast infrastructural road-building project required them to maximise their use of the latest technological innovations, and that JCB were an important part of that, bringing cutting edge construction technology into the country.

Vince Cable stated that JCB had built a worldwide network from their original location in the UK, and was committed to creating jobs in many countries. He also said that considering India's modernising projects, there was plenty of scope for further collaboration.

Vipin Sondhi expressed his delight that JCB's factory in Ballabhgarh was now the largest backhoe loader manufacturing facility in the world, and commented that JCB had a market share of more than 50 percent in India. JCB is looking to meet demand by eventually manufacturing a full range of equipment in India, including wheel loaders and compactors. The company is constantly investing in its Indian facility, especially the plants in Ballabhgarh and Pune, in order to be able to meet the constantly growing need for equipment.

AUSA and new importer VERHOEVEN feature at the TKD.

VERHOEVEN are the new importers of AUSA telehandlers and mini diggers into Holland, and through them, AUSA were in attendance at the TKD show in Barneveld. The TKD is aimed at the rental arena, and featured more than two hundred exhibitors from the construction and earthmoving machinery sectors. The exhibitors, focussed as they are on both the rental market and the end-user, allow their machines to be tested on-site.

The AUSA dumper D 150 AHG, a competitor of Thwaites dumpers, was the display model at the AUSA/VERHOEVEN stall, and features a loading capability of 1500 Kg. VERHOEVEN is a well established import company in the Netherlands, with a firm network of dealers, and satisfied customers, which is why AUSA have chosen to team up with them.

The Chinese crane market

One of China's largest B2B platforms, FRbiz.com, has issued a report on the state of the market for crawler cranes, mobile cranes, and the general market for cranes for sale. They predict the crawler crane market in particular will continue to grow.

The crawler crane sector was rather staid in China pre-2004, and was largely based on imports. However the breakneck rise of the Chinese economy, particularly infrastructural projects as well as power, steel and chemical industries, has fuelled a exponential increase in demand for crawler cranes. Between 2006 and 2007 the rate remained stable, but 2008 saw an increase of 69 percent, with 1648 units sold. The global economic downturn affected the market in 2009, and the sales of crawler cranes in China dipped by 31 percent, to 1131 units sold. The crawler crane market in China is still relatively young, and imports still account for 15 percent of sales. However, the broad range of incentives and road building and industrial projects instituted by the Chinese government means that projected sales for crawler cranes indicate a coming rise. Future infrastructural projects include a variety of wind power and nuclear power stations, which will further increase demand for crawler cranes. The next ten years will see an investment by the Chinese government of more than RMB 3 trillion, and with the need for wind stations and power plants, will come the need for all manner of cranes

Buying at the right time could help avoid Euro-6 price rise

The added cost of purchasing first generation Euro-6 vehicles can be avoided, claim DAF trucks, by upgrading your fleet now, with Euro-5 vehicles. The new emissions control legislation becomes effective in September 2013, and a cunningly timed purchase will help operators to avoid the initial phase of introduction, and its associated costs.

Tony Pain, Marketing Director for renowned truck trader DAF, explained:

Historically there's been an upswing in sales in the run-up to a new Euro-standard, but the difference with the changeover from Euro-5 to Euro-6 will be the significant price increase on the trucks. This is due to the additional exhaust after-treatment systems needed to meet the strict legislation. So if operators renew their fleet now on a three-year lease and then upgrade again on a five-year lease just before September 2013, they will have missed the initial take-up, and added cost, of Euro-6.


The size of the investment that truck manufacturers have made in terms of the development of Euro-6 vehicles means that a price rise is inevitable. Renault UK's commercial director Nigel Butler said, For Euro-6 we are anticipating a pre-buy as operators look to capitalise on the run-out of Euro-5 vehicles in 2013. This surge in sales could mean longer lead times because manufacturers have to gear-up production cycles to meet the peak in demand.

New mobile crane for Spencer Crane Hire

Devon-based crane hire firm Spence Crane Hire, has received a new model, which they ordered form Liebherr's selection of cranes for sale. Their new acquisition is a Liebherr LTM 1040-2.1, a 40 ton capacity model from Liebherr's range of mobile cranes. The crane is equipped with high-tech specifications, which include BlueTooth technology and remote control options. It is a two-axle model, with a 4x4x4 drive option, and superlative lifting capabilities. The main boom is 35 metres in length and is comprised of four sections, with a capacity of 7.4 tons, or 1.1 tons at a working radius of 31 metres.

It is driven by single engine, and is equipped with a ZF automatic transmission, which has 8 gears; two for reverse and six forward. The smoothness of the mobile crane when it travels is ensured by the hydropneumatic suspension. The steering capabilities include the ability to operate from the crane cab. The control systems are of the LICCON 2 genus, which is an on-board computer system that optimises the performance of the vehicle. It features a touch screen display system and a BlueTooth terminal. Julian Spence, of Spence Crane Hire, commented on the the company's new Liebherr, This is our tenth Liebherr and is equipped with the latest technology from Liebherr. We believe that it is the first mobile crane based in the West Country to have the optional BTT-Bluetooth remote control unit, which allows us wireless control of all crane superstructure functions. We are confident that this will make the set-up procedure safer and quicker and, if required, the operator can be close to the load to be lifted or placed.

South American markets are the future for US firms

As companies reveal their second quarter figures, it has become more apparent than ever that South America and its markets have been a huge part of the rising numbers. The economies of the US and Europe have begun to recover, but are doing so slowly, in minute increments. However, many European and US companies have been saved by large demand from South America, particularly Argentina and Brazil.

There are two saline treasons behind this: firstly, exports, particularly of agricultural and mineral products, have precipitated a growth in gross domestic product, and secondly, the factors which used to be prohibitive for American companies, such as hyperinflation and political volatility, are noticeably less pronounced.

Nicholas Heymann, an analyst for Sterne Agee and Leach, a brokerage firm, said, There's nowhere else in the world that's had the dramatic change in the middle class like Brazil, not even China. You've got an unfathomable amount of money there.

A variety of companies are either indebted to the Brazilian market, or are scrambling to become a part of it. PACCAR, makers of DAF trucks, has announced that it plans to construct an assembly facility in Brazil, in order to launch new and used DAF trucks across the continent of South America. They have decided that South America is actually a sounder investment than the vast emerging market of China, as the Chinese government often demands that Western companies enter into joint ventures with indigenous firms. Chairman and chief executive officer of PACCAR, Mark Pigott, said:

There's still been no Western truck manufacturer that's ever made any money in China in a partnership. Any of our competitors that are in South America seem to gain an inordinate amount of their net income from those markets. We're looking forward to growing in South America.

One company which demonstrates the potential of the Brazilian market is Whirlpool Corp., which manufactures appliances under the Brastemp and Consul brands, and have a huge market share in Brazil, with half of all Brazilian households, according to Whirlpool, owning a Consul appliance. Their rate of profit increase in South America was four times that of North America. Whirlpool chairman and chief executive officer Jeff Fettig said, In Latin America, the underlying economic fundamentals remain strong and we continue to see full-year growth [in appliance shipments] in the range of 10%.

Depreciation of dollar can be good for tractor makers

The chairman and chief executive of Titan International, the tyre manufacturing firm, has observed that the depreciation of the US dollar, in relation to other farming countries, is actually proving beneficial for the America's market for farm machinery.

Maurice Taylor said that although Brazil had become a major competitor to America, when concerning output of cotton, soybeans and corn, the farmers in Brazil are 'fighting' a currency that is appreciating. Mr Taylor said, Remember, a few years ago the Brazilian real conversion rate to US dollars was 4:1. Today it is 1.8:1. Therefore, it's a great time for the American farmer. Therefore, the fact that American farmers are in a very profitable state, will 'support farm equipment purchases'. He says that John Deere and Fendt tractors could become the 'big' winners. Large farm is running good and we believe it will go on for a few more years because corn, soybeans, cotton and wheat all use big equipment, said Taylor.

Titan International itself, which provides tyres for John Deere and Fendt, revealed a rise of 11 percent between April and June. The operating profits rose by 35 percent, although this was helped by cuts to the research and development department. The total earnings came in at $0.12 per share, which was fractionally ahead of the projections, which was $0.11.

Mr Taylor also said that the Titan International was set to stay on track to meet its financial targets for the year, on the mid-to-high side if business keeps going as it is today.

Construction underway on world's largest semiconductor plant

Saratoga County, New York has become the site of the largest computer chip production facility in the world. The construction of Module 1, the first of three semiconductor production plants to be built on the site, is under construction presently at the Luther Forest Technology campus.
The 1st module is to comprise four structures, which will span over 1.45 million square feet. The structures will include a support building, an administrative building, and a central utility building.

The construction is under the auspices of M and W US, which was awarded design and build contract worth $650 million, and is a three year project, having begun in 2009, with production of the semiconductors set to begin in 2012. A variety of Liebherr cranes are being utilised, and they have been supplied by Bay Crane. Bay Crane is the largest supplier of mobile cranes in New York City, and has been expanding its reach across the Northeastern regions of the country; the cranes for module 1 were supplied form their new Connecticut facility.

Joe Zils, Bay Crane's regional manager, said:

On such a high profile and fast tracked project, it was important for us to use the best machinery on the market. We operate one of the largest fleet of Liebherr crawler cranes in the Northeast, and they never let us down. The lifting capacity, maneuverability and reliability of the LR 1100 and LR 1300 made them the perfect cranes for this job.

Confidence beginning to grow in travel sectors

Travel, transportation and haulage firms, such as an airline or a truck trader, are a good indicator of the state of the economy as a whole. Air travel is rapidly affected by economic declines, and this was the case in the recession of the last two years, as airlines lost billions of Euros, as both individuals and businesses tightened their belts and refrained from flying. Likewise, when the numbers of these transportation industries begin to pick up, it tends to indicate that the economic climate is improving. The airlines have reported that it has almost returned to the pre-recession numbers, with Asia in particular driving the growth. China, the primary growth economy of Asia, and indeed the world, is vitally important, and although the government has begun to shrink some of the incentives and stimulus offers that were introduced in the face of the global recession, it still continues to grow in terms of its demand for equipment and products. Europe presents a less rosy picture, where the levels of growth are sluggish, and many governments have introduced so called 'austerity' policies in order to cut public deficits.

The industry continues to recover faster-than-expected but with sharp regional differences, said Giovanni Bisignani, Director General of IATA, Business confidence remains high and there is no indication that the recovery will stall any time soon. But, with government stimulus packages tailing off and restocking largely completed, we do expect some slowing over the months ahead.

The IATA said that air freight had grown by 26.5 percent, which points to a general increase in business. The world's largest steel-maker, ArcelorMittal, posted quarterly profits of €1.31 billion, which was a surprising level of growth, considering the figures for the commensurate period last year recorded a loss of more than €600 million. The reason for their 43 percent increase this quarter from the first can be accounted for by the return to profit of automobile groups. PSA Peugeot Citroen reported earnings of €680 million in the first half of the year, compared to a loss of €962 million in the first half of last year. Truck manufacturers are also superb indicators of the economic state of nearly every sector, and both Scania trucks for sale and Volvo trucks have been reported as being surprisingly robust. In Germany, the largest market in the EU, confidence in business rose remarkably, with the IFO Institute, a Munich based organisation, said, Firms are reporting significantly more favourable business conditions. The German economy is in party mood again.

Komatsu invest in Chinese market

The surge in demand for construction equipment in Indonesia and China has led Komatsu, one of the giants of the industry, to announce plans to double their production.

Despite projections being released in April, Executive Officer Masahiro Uegaki said in a Tokyo interview that the actual figures will exceed those projections by 60 percent. Last year saw 44,000 machines for the construction and mining industries produced by Komatsu; the end of this year will see approximately 85,000.

Komatsu's rivalry with Caterpillar means that they are counting on the US and Asian markets to grow this year. Despite China's demand for equipment, it saw a rapid decline in growth in 2008, and Yasuhiro Matsumoto, an analyst at Shinsei Securities Co. in Tokyo warns that, Komatsu faces the risk of a further slowdown in the Chinese economy, which would lead to a drop in its stock price. However, long term growth in the Chinese market, which is expected, will benefit Komatsu.

Both Komatsu and Caterpillar, great rivals and manufacturers of excavators, saw their share prices dip this, with Komatsu's falling 2 percent, and Caterpillar's falling by 0.3 percent. Komatsu have clearly targeted China as the market with the most potential, setting up a specific buying department for China, and sending a more than 20-strong delegation of executives to the country, as they vied with Hitachi, the Japanese construction equipment firm, and Sany Heavy Industry, an indigenous company, for business. At present, Komatsu is the leading supplier of excavators and other construction equipment to China, and it means to retain that share.

China is the world's most rapidly expanding economy, and also one of the largest, with Uegaki saying, China’s strength is outstanding. Indonesia is also strong, the markets for the country’s mining, agriculture, forestry and construction sectors are all good.

Komatsu combines Japanese and local produce in their excavators, with Japanese steel used to make the high-pressure tubes, and local steel for the booms and exterior shells. They have exceeded their projections, with an net income of 52 billion yen in the last two quarters, after a prediction 37 billion yen. The huge infrastructural projects in China, such as railways, roads and mining, mean that it now accounts for 19 percent of Komatsu' sales.

Recovery begins in the truck industry

The gradual worldwide recovery of the trucking sector is finally beginning to be felt further down the line, with automotive parts dealers in London seeing a small upsurge in business.

London, Ontario based wheel manufacturers Accuride have been forced into staff cuts in recent years, but recently was able to recall 40 workers who had been let go, making the staff numbers up to 130. Four years ago, the Accuride facility had 500 employees, and so the levels are still much lower than the pre-recession years. However, the beginnings of a recovery are an encouraging sign, with Tim Carrie, president of Canadian Auto Workers Local 27, saying, It is a good sign. It is good news when a company that supplies the trucking industry recalls workers — that is positive.

The fortunes of a company which is a truck trader is generally a good arbiter of wider economic situation, as a successful trucking industry indicates that goods are being purchased which require transportation. Someone buying used DAF trucks represents a pyramid of spending. The recovery is slow; as Carrie puts it, It is coming back in dribs and drabs.

Ceva logistics, which transports items for General Dynamics Land Systems Canada, is another firm which has recently been able to resume hiring new staff. They are recruiting 30 new employees, in various capacities; warehouse, shipping, forklift drivers and administration. To this end they are hosting a job fair on the 5th of August.

The Cami car facility, located in Ingersoll, is working to keep up with a large demand for two utility vehicles, the Terrain and the Equinox.
As a result it is looking employ a further 200 staff by the end of the year. As the recovery trickles down, Cami' supplier Rieter Automotive is also able to add staff, with 40 more jobs created. Carrie is cautiously optimistic, saying, I don’t think we will ever rebound to the level we were at, but this is a good sign. I measure a rebound in workers getting their jobs back, and that is happening now.

Manitowoc release second quarter figures

Manitowoc Co. Inc., manufacturers of tower cranes and mobile cranes, have announced their most recent sales figures, which are an increase on the last quarter, but still below last year's levels.

Manitowoc is based in Wisconsin, and is a major employer in Franklin County, where its plant is located in Shady Grove.

The sales figures that Manitowoc released are a 23 percent increase on the previous quarter, which is still 31 percent less than the second quarter of last year. During 2008, in the second quarter, Manitowoc sold cranes worth $1.1 billion; this second quarter saw sales of $425 million. Glen E.Tellock, Chairman and CEO of Manitowoc, said, The second-quarter crane segment results illustrate the continuing challenges of the current economic environment in which we operate.

The first part of 2009 saw Manitowoc cut the workforce at Shady Grove by 750 members of staff, whilst the share prices fell to a low of less than $5 per share, compared with the $40 per share which was quoted in 2008; at present, the shares are on the rise, with the current price being $10 per share. Like many other construction equipment manufacturers, Manitowoc is focusing on the developing markets, where the economic recovery has been much swifter than the US or Europe, with Trellock commenting, Similar to prior quarters, emerging markets such as Asia, Latin America, and the Middle East demonstrated positive signs of improvement, while demand in the developed economies of North America and Europe continues to be weak.

Eric Etchart, president of the Manitowoc Crane Group, says that the emrging and developing markets account for 40 percent of the crane orders that they are receiving currently, with the demand for tower cranes even on the rise in Europe. We're seeing better and better times, Etchart says, whilst still remaining cautious.

One problem is that companies and individuals wishing to order cranes are struggling to obtain the necessary credit. A sizeable order had to be removed recently because of what Tellock describes as, persistent financing challenges in the current credit markets.

The firms which supply equipment are also now likely to hold less stock, and are declining to purchase small cranes. While some recent positive indicators suggest a stabilization in certain mature markets, said Trellock, we remain guarded as we move into the second half of 2010. At the same time, we continue to drive the operational efficiencies, process improvements and cost reduction initiatives we implemented last year, which should provide enhanced profitability as demand strengthens across our business.