Riccardo VIAGGI Secretary General LATEST TRENDS IN THE CONSTRUCTION EQUIPMENT
Recent market trends & economic conditions 2
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Construction Equipment in figures The fundamentals 4
Construction Equipment in figures An integrated & international sector 5
Construction Equipment in figures A sector of SMEs 6
Performances & trends in numbers Very positive results and outlook 2016 + 10% sales Best results since 2011 Market worth 2/3 than pre-crisis levels Building equipment stronger than earthmoving 7
Performances & trends in numbers Very positive results and outlook France & Russia = strongest growth DE-UK-Nordic = close to pre-crisis levels South EU = low growth Shares of construction equipment sales in European countries, 1 st half of 2017 8
CECE Business Climate Index Index = sum of 1) evaluation of the current business situation and 2) turnover expectation Source: CECE Business Barometer July 2017 9
We consider our current business to be Current business situation exhibits a very positive picture, though manufacturers are not as euphoric anymore. Source: CECE Business Barometer July 2017 10
Construction- Climbing out of a recession 11
Performance of the construction sector Eurostat monthly bulletins on construction Positive 2016 +3.9% construction activity Boost by new construction Low civil engineering March 2017 monthly comparison -1.1% Infrastructure +1.1% Building -1.7% March 2017 yearly comparison +3.6% Infrastructure +6.8% Building + 2.7% 12
Reengineering construction equipment (McKinsey&Co.) 13
Trends for the future Emerging markets catching up on technology Acceleration of growth Higher profitability 14
To be competitive, European OEMs Have to: Differentiate the offer, rather then compete on price Marry their deep machine know-how with insights into the customer s specific operations 15
To reach the goal, European OEMs need Deep understanding of customers business A leading position in technology 16
Digitisation of machinery & construction 17
According to McKinsey Construction industry is among the least digitized McKinsey & Co. 18
Cost/schedule overruns affect our sector McKinsey & Co. 19
Productivity has declined in some markets McKinsey & Co. 20
Digital construction organisation Five ideas to improve performance 1. Higher-definition surveying and geolocation 2. Next-generation 5-D building information modeling 3. Digital collaboration and mobility 4. Internet of Things and advanced analytics 5. Future-proof design and construction McKinsey & Co. 21
An example: Autodesk AEC 22
Higher-definition surveying and geolocation Rapid digital mapping and estimating Reduction of geological surprises Significative improvement in accuracy and speed Modern survey technology now more accessible (Lidar + GPS = 10.000) Small cameras mounted on a drone are faster and cheaper than an helicopter McKinsey & Co. 23
Digital collaboration and mobility Paperless projects: from the office to the workforce Real-time sharing of information Transparency and collaboration Timely progress and risk assessment Quality control Better and more reliable outcomes McKinsey & Co. 24
IoT and advanced analytics Intelligent asset management and decision making Equipment monitoring and repair Inventory management and ordering Quality assessment Energy efficiency Safety McKinsey & Co. 25
IoT and advanced analytics An example from Komatsu Smart construction Komatsu Smart Construction 26
IoT and advanced analytics An example from Komatsu Smart construction 27
Regulatory challenges 28
Road Circulation Background Mobile machinery sector lacks harmonised technical rules for road circulation within the EU The EU Commission will analyse the policy options for a new EU law to fill in this gap 29
Road Circulation 30
Road Circulation Technical requirements Industry task force now chaired by CECE working Construction CECE Agriculture CEMA Gardening EGMF Handling EMF Municipal EUnited E.g. braking, steering, lighting but also tyre requirements (marking, solid tyres, foam filled and liquid ballast tyres, treadless tyres and steel wheels/tyres) 31
Emissions stage V- Regulation (EU) 2016/1628 Introduction Timing All engine categories 32
Emissions stage V- Regulation (EU) 2016/1628 Emission Limits Land based non-road mobile machinery CI 0-8kW CI 8-19kW CI 19- CI 37-56-130kW 130-560kW 37kW 56kW >560kW Gen-Sets >560kW Scope of existing Directive 97/68/EC Additional in Regulation (EU) 2016/1628 32 CI engines < 56kW & Engines >56kW Directive 97/68 New NRMM proposal emissions in g/kwh Stage CO NOx HC PM PN CO NOx HC PM PN A CI engines 0-8 kw variable & constant - - - - - - 8 7,5 0,4/0,6-1,1 CI engines 8-19 kw variable & constant - - - - - - 6,6 7,5 0,4-1,1 CI engines 19-37 kw variable & constant IIIA 5,5 7,5 0,6-5,0 4,7 0,015 1x10 12 1,1 CI engines 37-56 kw variable IIIB 5,0 4,7 0,025 - constant IIIA 5,0 4,7 0,4-5,0 4,7 0,015 1x10 12 1,1 Engines 56 130 kw variable IV 5,0 0,4 0,19 0,025-5,0 0,4 0,19 0,015 1x10 12 1,1 Engines 56-75 kw 5,0 4,7 0,4 - constant IIIA Engines 75 130 kw 5,0 4,0 0,3-5,0 0,4 0,19 0,015 1x10 12 1,1 Engines 130 560 kw variable IV 3,5 0,4 0,19 0,025 - constant IIIA 3,5 4,0 0,2-3,5 0,4 0,19 0,015 1x10 12 1,1 Engines P > 560 kw variable & constant - Gen-Sets - - - - - - 3,5 0,67 0,19 0,035 - variable & constant - others - - - - - - 3,5 3,5 0,19 0,045-6,0 Limit values in line with US legislation Limit values more stringent than US legislation 33
CO2 emissions non-road mobile machinery The 4 pillars approach 34
CO2 emissions non-road mobile machinery CECE CEMA CO2 brochure 35
Contact details Riccardo Viaggi Secretary General BluePoint Boulevard Auguste Reyers 80 B-1030 Brussels (Belgium) Tel.: +32 2 706 82 26 Fax: +32 2 706 82 10 E-mail: info@cece.eu Follow us on Twitter @CECE_Europe