Wheel loaders grow in popularity
Created 02/03/2009, 09:43:51 am - Updated on 02/04/2009, 12:23:40 pm
The increasing demand for recycling has seen the popularity of wheel loaders increase.
Specialist materials handling suppliers like Hanlon and Gorrel (now part of Hydrex) have benefitted from an increase in demand for wheel loaders. However, it will come as no surprise that they are also suffering from the economic downturn. "The majority of our work is in longer-term contracts, but that doesn't mean we are immune from the downturn," says Mike Haskell, general manager of Hydrex's Gorrel division.
His concern is that companies with idle machines will try and get into recycling and other active areas by undercutting the existing supplier. "They may feel that getting a lower rate for the machine is better than getting nothing at all."
Matthew Hanlon, director of wheel loader specialist hirer John Hanlon, has to find work for a fleet that has just gone over the 200 machine mark. While a large proportion of his machines are sent out on long-term deals, he says even contracted business isn't that secure in the current climate. "A contract is only sound if somebody is prepared to stand by it," he says, adding: "In the past, if on one day there was no work for a machine it would be allowed to stand, but now it will be off-hired for the day."
He says it is not always easy to find new work for off-hired loaders.
"Wheel loaders are a limited market and it's difficult to find other jobs for a machine. While you can send out an 8t digger to do the work of a 13t machine, with a wheel loader if you need a 12t machine, you need a 12t machine. Anything else would be too big for the site or too small to do the job," he says.
Haskell also says the machinery has changed a lot since the last recession: "Ten years ago, if you ordered 50 machines, 48 of them would be standard and the other two bespoke in some way or another now it's the other way round."
Companies are evaluating and fine-tuning a number of specially adapted machines for the waste/recycling industry. But customers want more than just technological advances: they want productivity and reliability - facets that won't be overlooked.
Source: newstin.com
