As the countries of eastern Europe develop economically and move towards membership of the European Union, so they gain in importance as markets for the crane industry. Although the numbers of new cranes remains relatively small, sales to the region (excluding Russia) of new mobiles grew by about 50% in 2001 (47 units up from about 30 in 2000), and the first quarter sales this year (12 units, up from seven) indicates further significant growth in 2002. There are few markets around the world that can claim such growth these days.
If you include Russia, the eastern European market for all terrains alone was 88 units in 2001, so it is no longer a region that the manufacturers should ignore.
Eastern Europe is becoming increasingly important to the industry for another reason. More and more cranes are being built there, and those that are not being built there are being supplied with major components sourced in eastern Europe. It is not hard to understand why. Many companies are evasive about the degree to which their machines are really built in their own home country. One manufacturer who is quite up front about its sourcing is Palfinger which is restructuring its manufacturing to build more in Slovenia and Bulgaria and less in Austria. Palfinger says that this is essential to compete with its Italian competitors. According to Palfinger, manufactuiring costs in Italy are 65% what they are in Austria. But by moving production to Slovenia it can produce cranes for 35% the cost at home. In Bulgaria, production costs are less than 10% of what they are in Austria. The quality of workmanship is high in many parts of eastern Europe and as this becomes more widely recognised, it is likely that other manufacturers will be proud rather than ashamed of their sourcing strategies.
For years Poland seemed to be making the most successful economic transition of all the former Soviet satellite countries but its rapid growth during the 1990s has stopped and unemployment has risen to about 18%. Now it is Hungary, the Czech Republic and Slovakia that are prospering, and there are developments in Romania, Bulgaria and Estonia.
Liebherr claims to be the market leader for sales of both new and used mobile cranes in the Czech Republic, Slovakia, Hungary, Romania and Bulgaria. The company attributes its success to having had well functioning local sales and after-sales service there for many years. In Poland, though, there are hardly any new cranes being bought. Instead, old ones are reconditioned in local workshops.
New crane sales across the region are often for special applications, where a used machine or Russian-built truck crane will not suffice. Tadano Faun, for example, delivered four ATF 60-4s to the Hungarian fire brigade last year (giving it 50% of the mobile crane market in that country, Faun claims). Faun says that three factors secured the contract: the servicing arrangements of its distributor, Horoszcoop, throughout Hungary; the crane’s taxi ability; and its two engines. The two engine design has advantages when incorporating the specific fire brigade equipment. Another two ATF 60-4s have been ordered for the fire brigade this year.
Another recent Faun order is from the Hungarian army for two BKF 35-4 recovery cranes. The German army has several of these cranes and they have also been supplied to the fire brigade in Klagenfurt, Austria and to recovery companies in Germany and in the Netherlands.
Like mobile cranes, most tower crane sales are also second-hand and there is a high population of older towers. Liebherr-Werk Biberach says there is ‘increasing movement’ however and that in particular the markets in Poland and Hungary are improving.
While all types of tower cranes are used, there is a stronger demand for bottom-slewing cranes in the 20tm to 40tm range. At an exhibition in the Czech Republic recently Liebherr exhibited its new 32 TT, the crane with the telescoping jib and telescoping tower. Liebherr has set up a new distribution company there, based in Brno, called Liebherr-Stavebni-Stroje-Cechy R.R.O.
Larger Liebherr towers are working on the Arena stadium construction site in the Hungarian capital, Budapest. On this project contractor Bouygues of France is using a 180 EC-H and a 280 EC-H tower crane as well as three cranes from the 256 HC series.
Sales of new truck mounted hydraulic loader cranes ensure that the region is still considered a minor part of the overall European knuckleboom market but forecasts are favourable, according to Italian manufacturers Effer and Fratelli Ferrari. The latter says that it regards the countries of eastern Europe as very important to its future expansion. Outlets have been established in Hungary and Estonia and Flli Ferrari is conducting sales and marketing reviews in Poland, Slovenia and the Czech Republic, with a view to increasing its participation in the region.
Flli Ferrari’s representation in Hungary is an alliance with a company that has been manufacturing forestry cranes for its domestic market for many years. It was formed by a management buyout of the assets from the state and is now marketing its own and Ferrari’s products across the country, using long established contacts and an expanding sales network. Demand is for cranes in the 15tm to 20tm range. Although Hungary’s economy is strengthening, Ferrari says, the majority of buyers still tend to be the municipalities and public utilities, but a growing awareness of increased productivity and safety is opening up the market to more users.
Countries with the largest growth in recent years for Effer are Slovenia, the Czech Republic and Poland. As with other crane types, second-hand units from western Europe are a major part of the market but the number of private sector customers opting for new cranes is growing daily, according to Effer. Recent sales of Effer’s larger cranes include an 80tm unit in Prague, the third unit of such a size that it has sold into the Czech Republic. A fourth unit will follow later in the year, Effer says.
Romania and Bulgaria are taking their first steps, Effer says, but there is little private sector market and the minimal activity is mainly from public and government authorities. Also emerging, for Ferrari, is Estonia where a small local company is selling its smaller cranes (up to 6tm). ‘The enthusiasm with which this market has embraced the small truck crane concept bodes well for an expansion into the medium and large crane ranges in the near future,’ Ferrari says.
Less refined forestry cranes are often used for general duties in eastern Europe which, according to Ferrari, indicates that the markets are maturing and will soon be demanding the newer technology and components from western Europe and around the world.
Whether eastern European crane buyers will indeed look more to the west for the equipment is a questionable point. It is possible that western manufacturers may step up their manufacturing presence within eastern Europe. It is also conceivable that an eastern European manufacturer may emerge in the years ahead to challenge the established manufacturing order.
