< PreviousPOWER LIST 2022 THE MANUFACTURERS PLANT / MACHINERY / VEHICLESJULY 2022 MANUFACTURERS POWER LIST 20 www.plantmachineryvehicles.com T he annual PMV Manufacturers Power List recognises the top manufacturers of heavy equipment and commercial vehicles that have strong market and corporate leadership, company culture and long-term growth strategy, both worldwide and in the MENA region. This list is not a ranking of any kind. The companies featured in this list have showed resilience during the last year in the face of supply chain disruptions and have reported strong results in the last fi scal year. The ‘Market Leaders’, featured in this list are companies that are ahead of the curve with regard to R&D and product development, business agility, and expansion of global production, distribution and service networks. PLANT / MACHINERY / VEHICLES MANUFACTURERS POWER LIST 21 www.plantmachineryvehicles.comJULY 202222 PLANT / MACHINERY / VEHICLESJULY 2022www.plantmachineryvehicles.com MARKET LEADERS KOMATSU A s the world’s second largest manufacturer of construction and mining equipment by sales, Komatsu has a leadership position across all its markets. Komatsu is consistently ranked among the top three brands of construction equipment in the Middle East. The UAE is a unique market for Komatsu because we have around 50% market share in construction equipment; this is the highest market share Komatsu has gained in any country in the world. We want to maintain our dominant position in the UAE while aiming to grow and replicate this success across other countries in the GCC. Overall, demand for construction equipment is high around the world. In the Middle East, we believe there’s huge growth opportunities in the construction sectors in Saudi Arabia and Egypt, driven by government spending on infrastructure. However, we need to address supply chain challenges due to shortage of raw materials, eff ects of the pandemic, shipping delays and several other factors. Global manufacturers have been aff ected in diff erent ways, but we all share the common challenge of managing lead time as it can take up to a year or more for delivery of some equipment. Komatsu is managing these challenges by relying on its strong manufacturing and inventory management capabilities. All Komatsu factories worldwide are operational at near full production capacity. Komatsu Middle East sources equipment primarily from Japan, but if required, we have multiple sourcing options to fulfi ll orders around the world. Komatsu Middle East manages inventory and order fulfi llment for the region through KOMATSU'S PROMISE OF “CREATING VALUE TOGETHER” IS BACKED BY ITS STRONG MANUFACTURING AND INVENTORY MANAGEMENT CAPABILITIES its Dubai stock operation (DSO) facility in the Jebel Ali Free Zone and a parts warehouse in Dubai. The DSO facility maintains an inventory of new Komatsu machines, ordered in advance from Komatsu’s factories in Japan. The role of this facility is to provide quick delivery to our customers in order to maintain the continuity of their projects. Production and shipping from Japan to the UAE can take up to four months. By estimating demand accurately, we can produce machines in advance and replenish our stock at the DSO facility, which then enables us to deliver to customers in the Middle East within two weeks of receiving an inquiry. The same approach applies to parts that are essential for maintenance and repairs, and we aim to deliver them to customers as quickly as possible. By stocking a larger variety of parts at normal times, we are able to off er quicker By Yoshihisa Hayashi, managing director, Komatsu Middle East Komatsu Middle East opened its Dubai Training & Demonstration Center (DTDC) in 2019 at the Jebel Ali Free Zone .23 PLANT / MACHINERY / VEHICLESJULY 2022www.plantmachineryvehicles.com MARKET LEADERS delivery of parts at all times so that when a machine breaks down, the downtime is as short as possible and does not interfere with the progress of the customer's project. We plan to boost utilisation of our Dubai Training & Demonstration Center (DTDC), which was opened in 2019 to train mechanics and operator trainers for Komatsu distributors in the Middle East. The DTDC also supports customers by improving the quality of maintenance and repairs after machines are delivered. For distributor mechanics who are unable to come to Dubai due to Covid-19 restrictions, we have been actively working to improve the quality of after-sales service through online training. PRODUCT DEVELOPMENT AND PARTNERSHIPS Currently, the top product categories in terms of sales for Komatsu in the Middle East are excavators, wheel loaders, dozers, graders and articulated dump trucks. We upgrade our product range for this region, with the aim to provide higher productivity and reduced fuel consumption in new models. Earlier this year, we introduced Dash-6 series wheel loaders – the WA480-6R, WA470-6R, WA430-6 and WA380-6 – in the Middle East. We also introduced a customised, low-ground-pressure version of the D155A crawler dozer with specifi cations ideal for the desert conditions in this region. We would like to introduce the Komatsu ‘Smart Construction’ suite of solutions that can enable the digital transformation of construction sites in the Middle East by providing valuable data to manage manpower, machines and material. We hope to launch a pilot project for Smart Construction in the next two years. We estimate that ICT-enabled construction equipment will be adopted in the GCC within the next fi ve years. This is a result of the changing customer outlook toward jobsite safety, productivity and sustainability and realising the potential of connected systems and real-time data. We also want to capitalise on the awareness about high-quality Japanese-made equipment and educate customers about the long-term benefi ts of investing in Komatsu, such as access to advanced technology, equipment and parts availability and strong local support from our distributors. “Creating value together” is the promise Komatsu makes to its customers and all other stakeholders. The emphasis on “together” indicates the importance we place on partnership. Yoshihisa Hayashi, managing director, Komatsu Middle East. Komatsu Middle East manages inventory and order fulfi llment for the region through its Dubai stock operation (DSO) facility in the Jebel Ali Free Zone and a parts warehouse in Dubai.24 PLANT / MACHINERY / VEHICLESJULY 2022www.plantmachineryvehicles.com MARKET LEADERS SCANIA S ince 2011, Scania, globally, has shipped trucks pre-installed with the Scania Communicator telematics hardware which provides access to Scania’s proprietary fl eet management services (FMS), and within a decade, the number of connected Scania vehicles globally has grown to over 500,000 connected vehicles. Scania trucks equipped with telematics hardware have been operational in the Middle East since 2014 without activation of FMS due to compliance challenges with local data regulations. However, the development of strong data protection and internet of things (IOT) regulations in the region is making it easier for the adoption of telematics. Marek Rucinski, services director, Scania Middle East, says: “This year, Scania introduced FMS in the UAE and Qatar with full compliance with the data regulations in these two countries. Expansion of these services to other GCC markets is subject to approvals from local authorities. “Scania fl eet management services (Scania FMS) encompasses all vehicle connectivity and data-driven services for managing trucks and drivers. Scania FMS is segmented into two packages for the UAE and Qatar – the Monitoring Package and Control Package.” The Monitoring Package is a free-of- charge service that provides a quick overview of a fl eet. It tracks parameters such as fuel consumption, idling, coasting, harsh braking, CO2 emissions, etc., and sends periodic reports (weekly, monthly, annually) to the customer via email. Scania customers with DATA UNLOCKS NEW OPPORTUNITIES FOR SCANIA FLEET OPTIMISATION no prior knowledge of fl eet management can use this service to monitor trends, which are indicated with arrows: green arrows for positive trends and red arrows for negative trends. This provides a comparative analysis of vehicle parameters and enables the Scania customer to identify problems and take corrective measures. In addition, customers get access to the Scania fl eet management portal (FMP) for service planning. The Control Package is the all-inclusive set of services available for a monthly subscription fee. The Control Package comprises four essential services: fl eet position, vehicle performance, driver evaluation and service planning. Fouad Ghezawi, service sales development manager, Scania Middle East, says: “Unlike 25 PLANT / MACHINERY / VEHICLESJULY 2022www.plantmachineryvehicles.com MARKET LEADERS the Monitoring Package in which reporting is done via email, the Control Package provides access to real-time data via a dashboard on the Scania FMP and Scania Fleet mobile app.” The fl eet position feature provides the status of the every vehicle including their on/ off status, moving direction and accumulated driving time. The vehicle performance feature provides engine, fuel and environmental reports. The service planning feature keeps track of maintenance plans and repairs. Scania FMS simplifi es the interpretation of fault codes by translating them into messages that can be easily understood by drivers and technicians without the need to refer to a manual. The driver evaluation feature enables fl eet managers to assess driver behavior periodically through a grading system that ranges from A (best) to E (worst). The grading system identifi es and tracks good and bad driving behavior, and the benchmarking enables drivers to pursue higher goals with regard to safe and effi cient driving and fl eet operators to address skill gaps by optimising their training programs. “Such corrective measures can have a signifi cant impact on fuel consumption and vehicle wear. Our studies indicate that an improvement in driver grades from E to A can result in savings as much as 15% of the annual fuel consumption, which is signifi cant considering the rise in fuel prices around the world,” says Fouad. “Currently, the Control Package covers the full scope of Scania FMS in the Middle East, and therefore, we off er the four services as a combined package. We can off er the services individually if there’s demand in the future, which is in line Scania’s philosophy of off ering modular solutions for hardware and services,” says Marek. The Control Package has three variants – Control 10, Control 5 and Control 1 – with the same functionalities but segmented according to the frequency of data transmission. In the Control 10, Control 5 and Control 1 packages, data is transmitted every 10 minutes, 5 minutes and 1 minute, respectively. “The Control 10 variant is suffi cient for 99% applications in the Middle East, and therefore, we off er it as the default advanced package. Control 1 is required only for some critical applications where the customer needs vehicle data updates every minute, for example, during the transportation of certain hazardous or explosive goods or in rescue and oil and gas applications,” says Marek. The Scania FMS subscription applies only to the service and not the hardware, because the Scania Communicator comes as a factory- installed unit on all Scania trucks. The Scania Communicator telematics hardware can be retrofi tted on Scania trucks as old as the 2010 Marek Rucinski, services director, Scania Middle East. Fouad Ghezawi, service sales development manager, Scania Middle East.26 PLANT / MACHINERY / VEHICLESJULY 2022www.plantmachineryvehicles.com MARKET LEADERS models as well as other truck brands. “We also off er similar telematics hardware for trailers that works in an integrated manner to enable tracking of both the prime mover and trailer as a single unit. Subscriptions to Scania FMS, including the free subscription to the Monitoring Package, are formal agreements between Scania and its customers that are in compliance with local data protection laws,” says Marek. THE IMPACT AND VALUE OF REAL-TIME DATA ON FLEET OPERATIONS Marek points out the intrinsic value of Scania FMS is the access it provides to historical and current data about vehicle utilisation, driver behavior and road conditions collected from over 500,000 connected Scania vehicles around the world, which is then combined with regular feedback, advice and customised training from Scania as well as its dealers. “Having a vast and growing database as a reference enables us to match with high accuracy a fl eet’s operating conditions with similar profi les around the world and perform a comparative analysis to provide the best solution customised for the region. In contrast, a telematics service from a third- party vendor requires additional expenditure on the hardware. Furthermore, a third-party telematics provider would be able to provide only a small fraction of the data that Scania FMS can provide, which limits the scope of data analytics for fl eets,” he says. One of the biggest advantages of real- time data, according to Fouad, is increased fl exibility for maintenance, which transforms into a dynamic process instead of a fi xed schedule. “This sets the stage for predictive maintenance where an algorithm can estimate with high accuracy the probability of failure of a part or the right time when a part should be replaced. By getting vehicles connected, customers have the possibility to avail more advanced services such as Scania Flexible Maintenance, Fleet Care or ProCare, to name a few,” says Fouad. “With more visibility of vehicle and driving parameters and the ability to make data- driven, proactive decisions, fl eet operators will see a positive impact in the form of reduced operating costs, and therefore, a lower total cost of ownership. Scania Data Driven Services together with professional support from Scania network create the partnership platform between Customers and Scania. As we say in Scania to our Customers: “For the only business that matters. Yours,” says Marek. The fl eet position feature provides the status of the every vehicle and accumulated driving time. The vehicle performance feature provides engine, fuel and environmental reports. The driver evaluation feature enables fl eet managers to assess driver behavior periodically through a grading system. The service planning feature keeps track of maintenance plans and repairs.27 PLANT / MACHINERY / VEHICLESJULY 2022www.plantmachineryvehicles.com MARKET LEADERS TRATON T raton Group which includes the brands Scania, MAN, Volkswagen Truck & Bus, Navistar, and RIO, is one of the world’s leading manufacturers of light-duty commercial vehicles, trucks, and buses. Traton reported solid earnings in 2021 in a challenging market environment, achieving a very sharp year-on-year increase in its sales revenue and its adjusted operating result. Sales revenue rose by one-third to $32.1 billion (€30.6 billion) compared to $23.7 billion (€22.6 billion) in 2020, driven by a strong truck business, the service business, and the integration of the new US subsidiary Navistar. Traton has outlined its ‘Traton Way Forward’ strategy and set an ambitious margin target for 2024. The target of a 9% return on sales for the group is based on the implementation of several strategic building blocks. Higher volumes, further growth in Vehicle Services business, the successful completion of the realignment of MAN Truck & Bus as well as further effi ciency gains, for example, are expected to support a higher profi tability. Unit sales of the group are expected to grow in the medium term, primarily driven by a highly competitive product and service off ering, the company’s recent entry into the North American market with Navistar, and the establishment of production in China. Captive and integrated Traton Financial Services will be benefi cial on Group level to best support future growth, new business models as well as customer requirements. Additionally, Traton is gradually introducing a common modular system for trucks and buses for all its brands. In the upcoming years, vehicles from Scania, MAN, Volkswagen Caminhões e Ônibus (corporate name in the future: Volkswagen Truck & Bus), and Navistar are set to be increasingly based on the Traton Modular System. The new modular system enables the effi cient and cross-brand development, procurement, production and, above all, simple integration of various vehicle components into the respective models of the brands via standardised group interfaces. The aim is for all Traton brands to use more common components and parts, mainly within the powertrain, cab, software platforms, and chassis. At the same time, each brand will maintain and strengthen its identity and individual off ering for the respective customer group. Christian Levin, CEO, Traton Group, said: “What does our new strategy, the Traton Way Forward, mean? It means that we have set ourselves clear targets and are consistently taking the steps we need to reach them. Thanks to our new matrix organisation and the Traton Modular System, our brands’ collaboration will become more effi cient, while a sharper focus on what our customers need will improve their competitiveness. We off er our customers an even more attractive portfolio — this is how we will grow. "We have a clear roadmap for our electrifi ed, connected, and automated commercial vehicles. We are optimising our cost basis and creating long-term value. And we are developing new business models for the transportation of tomorrow.” Traton’s complete takeover of Navistar in 2021 also marked an important step in tapping into new sources of revenue and markets in North and South America. At the same time, Traton is expanding its strategy in the Asian market. Scania is about to become the fi rst Western truck manufacturer to have its own production in China with a license to produce up to 50,000 vehicles a year. In the future, Traton will also work on strengthening new business models and partnerships that create value. To do so, it will expand its focus on logistics and digitalisation. Test drives on Level 4 out of a total of fi ve levels of autonomous driving began in Sweden in 2021. Although the truck operates autonomously on selected sections of highway, there is a driver on board for safety reasons. MAN Truck & Bus has also fi nished testing autonomous trucks as part of the TRATON'S 'WAY FORWARD' STRATEGY HAS A CLEAR ROADMAP FOR ELECTRIFIED, CONNECTED, AUTOMATED AND MODULAR COMMERCIAL VEHICLES ‘ANITA’ project, with successful results. The tests saw an MAN truck move autonomously around a port terminal, automating container handling. In order to take the lead in e-mobility, Traton is investing $2.7 billion (€2.6 billion) in research and development between 2021 and 2026. At the same time, the company is scaling back investments in conventional drivetrains, so that these make up less than one-fi fth of its product development spend in 2026. Because e-mobility can only succeed with reliable infrastructure., Traton, Daimler Truck, and Volvo Group are planning a joint venture to build a high-performance charging infrastructure for trucks and buses in Europe. As the number of vehicles powered by electric drivetrains grows, the main bulk of their carbon footprint shifts from the use phase back to production. To address this, Traton is also creating sustainable business models based on circularity for all its brands. Christian Levin, CEO, Traton Group.28 PLANT / MACHINERY / VEHICLESJULY 2022www.plantmachineryvehicles.com MARKET LEADERS CATERPILLAR C aterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off -highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The manufacturer does business on every continent, principally operating through three primary segments – construction industries, resource industries and energy & transportation – and providing fi nancing and related services. Caterpillar Inc. has a portfolio of 20 brands including the fl agship brand Cat, Progress Rail, Kemper, Solar Turbines, Perkins, FG Wilson and SEM. The Cat product portfolio is the most extensive in the industry, with products ranging from skid steers to marine engines to the 1000 tonne Cat 6090 mining excavator. The portfolio also includes technology products, and a broad array of services such as rental and fi nance. Primary industries served include construction, mining, power generation, marine, oil and gas, forestry, landscaping, agriculture, paving, waste, and quarry. Cat Financial provides a wide range of fi nancing solutions to customers and Cat dealers for machines, engines, Solar turbines, genuine Cat parts and services. Full-year sales and revenues in 2021 was $51.0 billion, up 22% compared with $41.7 billion in 2020. The increase refl ected higher end-user demand for equipment and services and the impact from changes in dealer inventories. Dealers decreased their inventories $2.9 billion in 2020, while remaining about fl at in 2021. Sales and revenues in the fi rst quarter of 2022 was $13.6 billion, a 14% increase compared with $11.9 billion in the fi rst quarter of 2021. The increase was primarily due to higher sales volume, driven by higher end-user demand for equipment and services and the impact from changes in dealer inventories, as well as favorable price realisation. Dealers increased inventories more during the fi rst quarter of 2022 than during the fi rst quarter of 2021. One of Caterpillar’s competitive advantages include its independent Cat dealer network. With 160 dealers and about 2,700 branches or facilities in 193 countries around the world in 2021, Caterpillar has among the most extensive sales and service network in the heavy equipment industry. Customer value agreements, repair options and rebuilds drove year-over-year double- digit services sales growth in 2021. Leveraging dealer data and telematics data from more than 1.2 million connected assets, Caterpillar generates insights by using advanced analytics and machine learning to deliver value-added services that help improve safety, minimise unplanned downtime and maximise productivity. Supporting customers in the transition to clean energy, Caterpillar made several announcements in 2021, including a collaboration to fully power a customer’s mine with an all-electric fl eet of machines for a zero-emission site, key collaboration agreements to explore hydrogen fuel cell backup power for data centers, and hydrogen fuel cell power for line-haul locomotives. The company also announced a collaboration with a data center customer to provide stand-by power utilising engines capable of running on 100% hydrotreated vegetable oil (HVO) renewable fuel and any blend level with diesel. Caterpillar is also transforming the mining industry with automation, connectivity and Electrifi cation (ACE) technologies. The company has the world’s largest autonomous fl eet of haul trucks: more than 500 autonomous trucks using Cat Command are in operation at 18 sites on three continents. At year-end 2021, customers using Cat Command technology had safely hauled more than 4 billion tonnes and traveled over 145 million kilometers autonomously. The year 2021 also marked the third consecutive year that we achieved our best safety performance on record. Jim Umpleby, chairman and CEO, Caterpillar, said: “We’re continuing to execute CUSTOMER VALUE AGREEMENTS, REPAIR OPTIONS AND REBUILDS DROVE YOY DOUBLE-DIGIT SERVICES SALES GROWTH FOR CATERPILLAR IN 2021 our strategy for long-term profi table growth. The three core elements of the strategy remain: services, expanded off erings and operational excellence. Services growth and our record safety performance were among the many highlights of 2021. We remain committed to a reduced carbon future, both in our operations and helping customers reach their climate-related goals. We continue to introduce products and services that facilitate fuel transition, increase operational effi ciency, and reduce emissions. While we continue to face supply chain challenges that negatively impacted our top line and our fourth quarter margin performance, we’re focusing on meeting as much customer demand as possible and remain encouraged by the continuation of strong end-market demand.” Caterpillar recently announced it will move its global headquarters to the company’s existing offi ce in Irving, Texas, from its current location in Deerfi eld, Illinois. Jim Umpleby, chairman and CEO, CaterpillarCase studies Understand the planning and execution processes behind complex earthmoving, lifting and transport projects worldwide. 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