< PreviousRENAULT TRUCKS 360˚ SOLUTION PROVIDER renault-trucks.com NEW RENAULT TRUCKS EVOLUTION RANGE Renault Trucks bringing major improvements in terms of driving comfort, on-board comfort, safety and More comfort, more uptime, more safety, more fuel savings. We have gone a long way to support you bety and productivity. you better.12 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comJULY 2021 GERMAN GULF ENTERPRISES STAYS AHEAD OF CUSTOMER NEEDS DEALERS13 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comJULY 2021 DEALERSL ocal dealers continue to bear the brunt of the pandemic as markets remain depressed with the recurring problems of tight liquidity and price competition. Profi t margins on capital goods are becoming thinner, and while the fall in capital expenditures has increased demand for rental equipment, the average rental rates for heavy equipment have been falling due to intense competition. As customers become risk averse and make investment decisions based on short-term objectives, their priorities are shifting in favour of the purchase price and availability of fi nancing as opposed to the total cost of ownership. They are often willing to consider low-price products and are looking internally to fi nd ways to reduce their operating costs. These factors have made it diffi cult to estimate demand and forecast sales. Situations like these separate the best from the rest. Only the top dealers that have successfully navigated economic cycles in the past can take a long-term view on the market, and German Gulf Enterprises (GGE) is one such market leader. Having been a major player in the UAE heavy equipment industry for nearly 50 years, GGE has evolved into a dealership and rental business representing global brands such as Putzmeister, Doosan, Liebherr, Atlas, Skyboom, Bonluck, AGG and Sullivan- Palatek in the UAE. Gearing up for its next stage of growth, GGE plans to expand both its retail and rental business divisions for construction equipment in the UAE. Mark Johnson, general manager of German Gulf Enterprises, sees 2021 as a recovery year based on a resurgence in demand for new and rental equipment since the fi rst quarter. “Expansion and contraction periods are part of every economy. We would rather focus on the positive indicators of recovery. Activity in the cement and concrete industries is picking up and we are receiving an increasing number of enquiries for heavy equipment, which are strong indicators of construction activity. The number of new concrete batching plants commissioned in the UAE have increased this year, after a slowdown last year. Furthermore, customers seem to be more confi dent in investing in machines this year, and a higher proportion of them are able to secure bank fi nancing for their machines, unlike last year when it was diffi cult. So, it’s safe to say we’re on the path to gradual recovery,” says Mark. GGE’s strategy in response to the growing competition is to increase awareness among customers that the purchase price is only one of the several factors that aff ect total cost of ownership and by emphasizing the importance of product quality, uptime, reliability and productivity while making investment decisions. “We realise that customers are increasingly likely to opt for the lowest quote they receive. This is not necessarily detrimental to our business; instead, the emergence of low-price products has pushed us harder to emphasize on the quality, performance and residual value of our machines, enabling our sales team to off er more convincing arguments in favour of our off ering when the discussion is about total cost of ownership. We continue to improve our value proposition with cost-eff ective solutions that include timely equipment replacement and upgrades along with superior after-sales services,” says Mark. Recently, GGE refurbished its workshop in Abu Dhabi and its warehouse in Dubai which houses its parts distribution centre. To forecast demand better and replenish stock, GGE is integrating the Syncron inventory management software in conjunction with Putzmeister and planning to introduce an ecommerce platform for ordering spare parts. “We estimate demand as accurately as possible by spending more time with customers to understand their changing requirements while also investing in the best inventory management systems. This helps us stay ahead of their needs and ensure we have equipment and parts in stock, especially taking into account the disruptions to the global supply chain,” he adds. Supply chain competency has helped GGE fulfi l orders throughout the pandemic. Through eff ective inventory management, GGE has managed to deliver Putzmeister concrete pumps from stock despite factory lead times stretching up to six months, compared to the usual lead time of 3–4 months. During this period, Putzmeister truck mounted concrete pumps with vertical reach of 42m and 56m were sold to Gulf Concrete, CK Beton Ready Mix, and Al Hamra Readymix. “We fulfi l orders with the build slots that we have reserved with Putzmeister throughout the year. Concrete pumps, particularly, have a long lifecycle, and customers tend to operate them longer, which increases their maintenance costs while aff ecting the productivity and 14 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comJULY 2021 DEALERSreliability of the machines. To minimise operating costs, several customers are planning to upgrade their fl eet, and based on the enquires we’re receiving, there’s higher demand this year for Putzmeister’s 42m and 51m concrete pumps,” says Mark. Putzmeister is GGE’s oldest partner and fl agship off ering in the UAE. By off ering the full range of Putzmeister products and spare parts in the UAE through both sales and rental channels, GGE enjoyed a market share of 40–50% in mobile concrete pumps until the pandemic. Last year, the company achieved over 30% market share considering that the total number of pumps sold in the UAE was only 27 units. “Despite the pandemic, we maintained our leading position in the sale of mobile concrete pumps. Although Asian brands got a small share of the pie, European brands continue to have the highest loyalty in the UAE. This year, we estimate the market for concrete pumps in the UAE to be around 30 units, among which we expect a share of 30–35%. We expect to bounce back to 40–50% with full market recovery,” says Mark. GGE has also started customer trials of the Putzmeister Machine Cockpit and Ergonic 3.0 control system to enable remote control, management of concrete equipment. “Telematics is a growth market for the heavy equipment industry. We have the opportunity to off er remote monitoring and diagnosis of equipment as value-added services and monetise them in the future,” says Mark. It has been over a year since GGE partnered with Doosan Infracore to off er Doosan excavators and wheel loaders in the UAE. Since last year, GGE has incorporated a considerable number of Doosan equipment into its rental fl eet. “The customer perception of Doosan in the UAE has always been strong, and Doosan deserves to be among the top three construction equipment brands in the UAE. Our partnership with Doosan Infracore has helped build more confi dence about after- sales services. Having Doosan equipment in our rental fl eet has boosted visibility for the brand as well as our rental income. We are equally focused on retail sales, and it is promising to see sales of Doosan equipment gaining traction since the beginning of this year. This gives us the confi dence we’ll be able capture at least 5% market share for Doosan this year,” says Mark. GGE’s recent partnership with Sullivan- Palatek will enable the company to off er air compressors specifi cally designed for oil and gas applications. GGE has incorporated Sullivan-Palatek to both its sales and rental businesses. “We’ve identifi ed certain market segments that could benefi t from these new products. Especially with power equipment rental, we do not want to compete with other rental companies that are also our customers. Our primary objective is to satisfy demand from our existing rental customer base,” says Mark. As of July 2021, GGE’s rental fl eet comprises 150 equipment including excavators, wheel loaders, concrete and mortar pumps, aerial work platforms and lighting towers. The company plans to increase its fl eet size by 30–40% this year with the addition of construction and power equipment. “Our recent partnerships with Doosan and Sullivan-Palatek are examples of how we intend to expand in the UAE with a combination of both sales and rental channels. We seek complementary products that can add value to our off ering. There’s scope for new brands that can off er better product quality and support, provided they are off ered through reputable local partners. The benefi t of running a dealership and rental business is that we have the fl exibility to cater to every customer requirement with new, used or rental equipment. From the customer’s perspective, having the choice of purchase or rent is an advantage depending on their project duration and scope and how they want to manage their CAPEX and OPEX. Either way, we will deliver high- quality equipment backed by solid after-sales support,” says Mark. s 15 PLANT / MACHINERY / VEHICLESwww.plantmachineryvehicles.comJULY 2021 Mark Johnson, general manager, German Gulf Enterprises. DEALERSPOWER LIST 16 PLANT / MACHINERY / VEHICLESJULY 2021www.plantmachineryvehicles.comPOWER LIST 17 PLANT / MACHINERY / VEHICLESJULY 2021www.plantmachineryvehicles.com THE MANUFACTURERS The annual PMV Power List casts a spotlight on the companies and leading fi gures in the heavy equipment and commercial vehicle industries the Middle East, focusing on their developments and achievements in the previous 12 months. A consolidated list for manufacturers, dealers and rental companies until 2020, the PMV Power List was spun off into three specialized Power Lists, each dedicated to a core market. Following the inaugural Rental Power List 2021 published in April, we present the Manufacturers Power List 2021 featuring profi les of prominent heavy equipment and commercial vehicle manufacturers that have strong corporate leadership, market leadership, company culture and a clear growth strategy. As with all PMV Power Lists, this is not a ranking of any kind. The companies featured in this list have provided details and updates about their achievements in product and market development during 2020–21, as well as their future plans for the Middle East and Africa. The common thread in this list is that all companies are market leaders in one or more segments; they have managed supply chain disruptions well during the last year, continued investment in R&D and manufacturing, strengthened their dealer network and maintained their brand equity. POWER LIST 18 PLANT / MACHINERY / VEHICLESJULY 2021www.plantmachineryvehicles.com RENAULT TRUCKS GREGOIRE BLAISE HEAD OF RENAULT TRUCKS GREATER MIDDLE EAST R enault Trucks, which is headquartered in France with manufacturing facili- ties at Blainville-sur-Orne (Calvados, Normandy), Bourg-en-Bresse (Ain), Lyon (Rhône) and Limoges (Haute-Vienne), distrib- utes its vehicles in over 80 countries and em- ploys over 9,500 people worldwide. The French commercial truck manufac- turer traces its history to 1894 when Marius Berliet, the founder of the company, built the fi rst engine in Lyon, and led the development of the fi rst modern truck – the ‘M’ – in 1910. Renault V.I., the name of the company from 1992 to 2001, then launched a completely new style range through the following years, the Renault Magnum in 1992, a revolutionary, fl at- fl oored truck which became a reference on the European truck market; then the Renault Pre- mium in 1996, a powerful long-distance truck; Renault Kerax in 1997, the most robust con- struction truck to work in extreme conditions; and Renault Midlum in 2000, designed to fa- cilitate the day-to-day work of city deliveries. In 2013, Renault Trucks renewed its entire range of commercial vehicles for long haul, construction & heavy construction and dis- tribution applications. With over €2 billion investment and the most stringent testing Re- nault Trucks has ever carried out in its entire history, this was the fi rst time that any truck manufacturer has ever renewed its entire range in a single stroke. Across the Middle East, Renault Trucks supplies transport professionals with a wide range of services and vehicles ranging from 2.8 to 120 T that are adapted to local and regional distribution, construction and long-distance activities. Globally renowned for being sturdy and reliable, with low fuel consumption that delivers greater productivity and enhanced operating costs, the model line-up includes the D, C and K ranges. Renault Trucks’ Greater Middle East geo- graphical division covers 21 countries in the Middle East – from Sudan to Pakistan – from its head offi ce in Dubai. Renault Trucks fi rst started selling its range in 1999, and then opened a small branch in 2003 to cover all GCC countries. Subsequently, Renault Trucks rapidly signed distributor partnerships with prominent companies in Oman, Qatar, Dubai, Abu Dhabi, and Egypt. Recently, Renault Trucks appointed new importers in Egypt, Iraq, Pakistan and Leba- non and initiated renewed focus and sup- port to its other long-term partners. Renault Trucks’ new importer in Egypt has crossed the 10% market share threshold after 2 years in operation while its long-term partner in Saudi Arabia reached its highest market share ever in the biggest Middle East market. “Our major markets in the region are the UAE, KSA, Oman, but we have new importers in many countries like Pakistan, Iraq, Egypt, Lebanon and Kuwait with high potential. In addition to Qatar which remains the region- al benchmark for customer satisfaction and market performance with a consistent over 20% market share, Saudi Arabia and Egypt are the two markets where Renault Trucks per- formed the best in 2020. Moreover, the focus is not only on new trucks but also on Used Trucks, and 2020 was also a positive year for the Used Trucks by Renault Trucks label in the region,” says Gregoire Blaise, head of Renault Trucks Greater Middle East. Renault Trucks has announced major prod- uct improvements in 2021, including upgrades in the driving comfort, on-board comfort, safety and productivity of its T, T High, C and K ranges. Sleek and modern in design, the new trucks promise reduced fuel consumption (fuel savings are expected to be at least 3%), and optimised maintenance, this is the most important evolution since the total renewal of the Renault Trucks ranges in 2013. The new vehicles are adopting a more assertive style, particularly in terms of the headlights, which have been reduced in size in order to increase the painted surface of the lower body section. The cab’s aerodynamics have also been im- proved around its new honeycomb grille and wheel arch extensions which have been added “Qatar remains the regional benchmark for customer satisfaction and market performance with a consistent over 20% market share. Our new importer in Egypt has crossed the 10% market share threshold aft er 2 years in operation, and our long-term partner in Saudi Arabia achieved its highest market share ever in the country” Gregoire BlaisePOWER LIST 19 PLANT / MACHINERY / VEHICLESJULY 2021www.plantmachineryvehicles.com to improve airfl ow. The vehicles have been fi tted with new technology to further reduce fuel consumption. These include a new ver- sion of the Optivision predictive cruise con- trol system with two selectable driving modes. Looking towards the next generation of trucks, Renault Trucks inaugurated an ad- aptation center at its manufacturing plant in Normandy to increase the production of fully electric vehicles. All adaptation opera- tions carried out on Renault Trucks D and D Wide medium-duty trucks at the end of the production line will now be done within the factory. These new facilities cover an area of 2,500 m2 and allow operators, technicians and engineers to operate at nine workstations si- multaneously. In this workshop, the experts in Renault Trucks' medium tonnage ranges now make customised trucks and carry out opera- tions to fi t equipment and accessories, install safety or driver comfort solutions or make ex- tensive modifi cations to the chassis structure. With regard to global supply chain disrup- tions and raw material shortage, Renault Trucks is working closely together with sup- pliers to fi nd alternative components to mini- mize the number of vehicles aff ected. “We aim to recover these volume losses and work with our supply chain partners to have enough fl exibility to be ready for a production increase with short notice,” says Gregoire. Next >