M&T Expo challenges pessimism in world markets and achieves startling success in visitation and volume of business
Around 54,600 visitors from various states in Brazil and 71 countries; more than 1,000 brands represented in some 3,500 units of equipment that were on display on 62,057 m² of total area; a volume of business that involved about R$ 1.2 billion (US$ 667 million), which represents 10% of the segment’s total annual revenues and which was 20% higher than in the previous edition. These are the figures that confirm the success of M&T Expo 2012 - 8th International Exhibition for Construction Equipment and 6th International Exhibition of Mining Equipment. This edition of the event has gone down in history as the largest and greatest of all time, reflecting the strength of the construction sector in Brazil today.
Such a success establishes M&T Expo as the largest showcase for new product introductions and innovations in equipment for the business chain of construction in Latin America. During the event, held May 29th to June 2nd at the Centro de Exposições Imigrantes in São Paulo, 494 exhibitors - 270 of whom coming from nine Brazilian states, and 224 international exhibitors from 15 countries - gave visitors a demonstration of what the industry worldwide is producing to make the activities of construction and mining more productive, efficient and environmentally responsible
A “lucky charm” of a trade show
Even before the results of the show were tallied, Sobratema President Afonso Mamede, in his official opening speech at the event, called the public’s attention to the global context in which M&T Expo 2012 was taking place. To him, the realization of the show was, above all, a declaration of faith in the construction industry in Brazil and a bet on the ability of the country, once again, to overcome the challenges to which it was put.
“It causes us concern when we realize that M&T Expo 2012 is being held at a very difficult time for most of the world’s major economies. The United States - the economic locomotive of the world - completed, last April, 42 consecutive months of budget deficits and the country’s debt already exceeds US$ 15 trillion dollars; in other words, a debt the size of the nation’s GDP. Japan’s economy, the world's third largest, has been stagnant for years. Europe, as we are all witnessing with startled amazement, is going through its worst ordeal since the adoption of the Euro. European countries, which a few years ago were seen as references in terms of economic stability and social development, are experiencing today a very grave situation. (...) Given such an overwhelming, devastating scenario, all eyes turn to emerging economies, especially those of China, India and Brazil. It would be unthinkable to imagine, not so long ago, that our country would be part of the solution to a severe global economic crisis,” he affirmed.
Mamede recalled that the previous edition of M & T Expo, held in 2009, happened under an equally troubled context, but the results surprised the show’s participants. “When we held the last M&T Expo, the world was still under shock from the crisis of derivatives and mortgages which led to the bankruptcy of the Lehman Brothers investment bank and the serious events that ensued. In the months leading up to the event, many believed that we should rethink whether to hold the fair, after all, the world was perplexed with a crisis of unexpected proportions and the equipment market had literally stopped. But we moved ahead - we conducted the show and the results were surprising. In a way, we can say that M&T Expo 2009 contributed positively to reverse that setting of stagnation. Many of us here are witnesses to the fact that the show of 2009 not only exceeded all expectations, but also broke all sales records. We know that many exhibitors sent e-mails from here at the Centro de Exposições Imigrantes, surprising their head offices, celebrating sales made daily during the show. I confess that it was very gratifying to see that during M&T Expo 2009 we were broadcasters of good news all over the world. We hope that this repeats itself, always.”
Afonso Mamede acknowledged that much of Brazil’s privileged situation stems from the disciplining remedies applied by government in 1995, when the country’s financial system was submitted to very strong restructuring. And that the very low level of the Brazil’s foreign debt and control of the public deficit over the last few years were crucial to affording us the position we enjoy at this moment. "Thanks to these factors, Brazil was able to adopt measures that enabled the growth of our domestic market and a considerable improvement in the distribution of national income. There is no doubt whatsoever that Brazil’s internal market, following the expansion of the middle class and a reduction in poverty, is now the main supporting pillar of our economic growth,” Mamede celebrates.
But the president of Sobratema pondered: “Before anyone criticizes us for excessive optimism, we should also remember that there is still apprehension in Brazil’s economic scenario.” Among the concerns of the Brazilian society, he underscored three that strongly impact what is known as "Custo Brasil” (or, loosely translated, the ‘cost’ to bear for doing business in Brazil): the country’s deficient infrastructure (roadway and railway networks, ports, airports); the slow pace in issuing of permits for commencement of work and work stoppages, causing inevitable delays arising from factors outside the actual work environment; and the high tax burden levied upon payroll which is a negative factor and an inhibitor of the generation of employment in our industrial sector.
Afonso Mamede defended the urgent need for reform in the country’s legislation, as well as investments in infrastructure projects that the country badly needs, and that are at the core of the “Custo Brasil”. “Even with having to overcome these and many other difficulties that beset us, Brazilian engineering is on an absolute par with that of more developed nations, and is fully qualified to perform the works that the country needs. Especially now when we are faced with the challenge of overcoming the short time that we have left and how much remains to be built for the inauguration of the 2014 FIFA World Cup and the 2016 Olympic Games - events that require a significant concentration of the efforts of Brazilian engineering to meet the scheduled deadlines.”
Citing a recent study commissioned by Sobratema, Mamede pointed out that in Brazil there are over 12,000 medium and large works of construction underway or to be initiated by 2016 involving investments of over R$ 1.4 trillion (US$ 778 billion). These are investments in infrastructure that the country demands and that demonstrate the existence of new business frontiers and opportunities for the sector.
Concluding his speech, Afonso Mamede pointed out that the net area occupied by 490 exhibitors, which reached 62,000 m2, established a record for trade fairs held in the city of São Paulo - the largest center of trade fairs in Latin America. “Holding an event of this magnitude, involving the most prominent equipment manufacturers in the world, and getting visited by a highly qualified audience from of 26 different countries is a task that demands responsibility, professionalism and, above all, hard work, much dedication and commitment from each of the professionals and employees who are part of the organizing team.”
A sea of news
A number of companies that are acknowledged as leaders in their business segments took advantage of the backdrop provided by the show to introduce new products that, until then, had been kept under lock and key. The climate was one of healthy competition and visitors - mostly a qualified audience consisting of company directors, buyers, users, opinion makers, etc. - dashed from booth to booth to see the news, compare the advantages offered by manufacturers, and marvel at the new designs of the machines on display - increasingly more beautiful and efficient.
One good example of this is Volvo, which saved its C-Series skid steer loaders, B-Series backhoes and D-Series excavators for introduction at the trade show, in addition to its G-Series wheel loaders and the company’s F-Series articulated haulers (dump trucks).
With the new C-Series skid steer loaders, Volvo expands its line in this segment, leaping from five to nine options that the company brings to the market: MC60C, MC70C, MC85C, MC95C, MC105C, MC115C, MC125C, MCT70C, and the MCT125C. “Safety, versatility, comfort and ease of access for maintenance are the main features of these Volvo skid steer loaders,” says Yoshio Kawakami, president of Volvo Construction Equipment Latin America.
Among the innovations in the C-Series skid steer loaders, the executive points out the cab which was designed with a focus on advanced ergonomics, safety and operator comfort. The cab is 27% roomier than the previous series, air-tight and very comfortable. It has a sliding window on the right side, a windshield wiper, heating and air conditioning (optional, integrated into the cab and equipped with six air vents), and tempered left and rear window glass.
The side door covers the entire length of the cab, ensuring greater ease of access. In the closed cab option, the indoor environment is free from noise, dust and debris while providing optimal visibility.
Volvo’s new line of B-Series backhoes, models BL60B and BL70B also surprised visitors to the show for the variety of embedded technological advances. The series offers three types of cab: basic, standard and deluxe - all with brand new design, more curves and new materials. New features were introduced in the equipment, a greater variety of attachments and options. The engine is a Volvo four stroke, four-cylinder, turbo-charged D5D with 4.8 liters, direct fuel injection and low emissions. There are two power options per model: The BL60B can come with engines of 64kW (86hp) or 70kW (94hp), and the BL70B can be supplied with engines providing 70kW (94hp) or 74.9 kW (100hp). The fuel tank is 20% larger and the size of the hydraulic cylinder of the loader arm has been enhanced, providing increased breakout force and providing increased lifting capacity.
Next, the new Volvo EC380D and EC480D excavators arrived with the promise of greater performance and productivity of operation. Equipped with the latest Volvo D13 engine, the EC380D and EC480D excavators provide improved performance with great fuel efficiency. “They were designed specifically with emerging markets in mind; among those markets, Brazil. Besides offering greater digging force and faster cycle times, the new D-Series excavator has better energy efficiency: its new engine delivers 9% to 13% more power compared to the previous series, and a 15% lower cycle time. Therefore, these excavators provide 8% better fuel efficiency,” says the president of Volvo Construction Equipment Latin America.
The new engine uses high pressure, high precision fuel injectors, a turbocharger, an air cooler, and electronic systems that optimize engine performance. The excavators have a maximum net power rating of 208 kW (279 hp) for the EC380D model and 256 kW (343 hp) for the EC480D, gross engine power is up to 13% greater for the EC380D and 9% greater for the EC480D compared to the previous generation of machines.
The new machines are equipped with a system of automatic idle which reduces the engine speed when controls have been inactive for a certain period of time, which provides lower fuel consumption and lower operating costs.
There were also surprises at the Case stand. The company launched at M&T Expo 2012 its new line of compact midi-excavators. The CX75SR and CX80 have a short turning radius, net power of 54 hp and a superior maximum digging swing radius of six and seven meters, respectively. “One of the main applications of these machines is excavations in urban areas, in roads and avenues, for example, where one has to keep lanes free for traffic,” says Edmar de Paula, Manager of Product Marketing.
The size of the midi-excavators is somewhere between the size of the excavators and compact mini-excavators introduced by Case earlier this year, and they are a good option for small spaces and operations that require higher productivity.
Comparatively, while the largest model of compact excavator- the CX50B model - reaches 39.8 hp net, an operating weight of 4,660 kg and digging depth of 3.9 meters, the midi-excavators can reach an excavation depth of 4.59 meters and have an operating weight of up to 8,430 kg.
“This difference is very important when working space is small. The turning radius has to be short, but productivity is a key factor,” stresses Edmar.
Another difference is the design of the machine's boom with central pivoting (enabling it to swing) in the CX80 model and the offset boom offered optionally for the CX75SR model, enabling digging parallel to the machine, up close to walls and other obstacles.
The two models of midi-excavators also have a hydraulically-controlled front blade which ensures greater stability and versatility of the equipment.
The midi-excavators are manufactured in Japan and come with low-emission, Tier 3 engines which provide low fuel consumption.
News from Germany
German manufacturer Putzmeister, which produces concrete pumps for the construction and mining industries and which has just been acquired by Chinese holding company the Sany Group, saved the worldwide launch of its Mixkret 4 concrete mixer for M&T Expo 2012. The new low-profile product is designed for mixing and transporting concrete for mining, making it ideal for work in tunnels and mines. The machine has smaller dimensions - this, incidentally, is a trend that was seen at M&T Expo: increasingly more compact equipment - and four-wheel steering (aka crab steering), which ensures greater maneuverability in areas of operation.
In the segment of mortar, news from Putzmeister is its new wall plastering machine that provides a gain of nearly four times in man/hour productivity compared to the previous model. Previously, it was possible to cover 150 m²/day using 12 operators. Today, with only eight professionals, the machine produces 350 to 400 m²/day.
Another exhibitor that brought news to the show was New Holland. The company showed the new configuration of the motor graders, launched in 2011. The new line of New Holland motor graders gained even greater improvements in its engine and transmission. As regards engines, the RG140.B, RG170.B and RG200.B models as of now come equipped with the most advanced models offered by FPT - Fiat Power Train, a member of the Fiat Industrial organization. Previously available as optional engines, they have now become standard equipment.
The engines have six cylinders, electronically-controlled Common Rail type fuel injection, turbo after-cooler and variable power. Translating what this means in terms of benefits for the customer, these components will increase the strength and reduce consumption and emissions of the equipment.
The mechanization of civil construction sites and the increase in the number of palletized loads have led many construction companies and providers of services to opt for telehandlers. In 2010, about 700 products were sold. Last year, 1,200 were sold (or almost double the number) with an even more encouraging outlook for this year.
Therefore, New Holland is betting on more up-to-date versions of the equipment: its LM1445 and LM1745 models. Both models bring the most advanced technology available in this class of machines and have the capacity to lift loads of 4,500 kg. They are also equipped with the modern New Holland Tier 3 engine, which meets all European and Brazilian standards for emissions.
Known in Brazil for the predominance of the brand’s road building machines, Caterpillar showed, during the fair, signs of a slight change of course. The company presented for the first time ever, machines such as the AP255E Asphalt paver, the 226B3 and 242B3 Skid Steer Loaders and the company’s H75E Hydraulic Hammer. This demonstrates the determination to defend its enviable position in the market, combining other segments in which it did not operate.
Those who visited the BMC stand in the very early hours of the show came upon various structures that were carefully cloaked in black plastic. The surprise was only unveiled during the event, with pomp and circumstance, by the company's President Felipe Cavalieri: the secret was the new 9S Series excavator from Hyundai, consisting of more robust machines, designed to provide greater savings, comfort and safety.
The 9S excavators were enhanced with new technological features and resources to facilitate the operation of the equipment and to also reduce environmental impact. Successors of 7 and 7a Series, the machines that were launched at M&T have lower noise and emissions levels and, in return, offer more comfort for the operator, greater endurance and speed in the execution of different types of services. The cab that was redesigned for this series has an easy-to-open front windshield, which ensures greater and better visibility. The new 7-inch LCD control panel with advanced control allows adjustment for custom-setting of the work mode and displays a failure report to help in maintaining the equipment.
The machine also features the CAPO (Computer Aided Power Optimization) system for electronic management of the engine and hydraulic pump. Optionally, the 9S excavator comes factory-readied for the installation of rear view camera and remote monitoring system.
Debuts in high-stepping style
There was even a newcomer who developed a specific product to participate in M&T. Noma, which is among the five largest manufacturers of road building implements in South America, with headquarters in the city of Maringá (PR), participated for the first time in M&T Expo with the intention of investing in strategic niches in the company’s plans for growth.
The innovations of the brand presented at M&T Expo were the company’s new half-round dumper truck, designed for the transportation of abrasive minerals, and a cylindrical thermally-insulated tank made of 430 stainless steel, for transportation of liquid asphalt for highway construction.
The trailers were shown in the versions on 8x4 chassis (designed specifically to be displayed at M&T) which are used by mining companies to carry rocks from initial blasting or that are large and heavy, and the half-round 6x2 semi-trailer for hauling of smaller stones that have been through second blasting.
Among the trailers’ distinguishing aspects compared to the competition, according to the manufacturer, are the new shock absorber in the cargo box, which eliminates friction between the chassis thereby helping to extend service life of the hydraulic cylinder and to decrease the noise caused during hauling of loads by 60%. Another feature is the geometric shape of the cargo box which contributes to rapidly unload the product.
As regards the tank truck, it features a 37,000 liter capacity and is highly resistant so as to endure travel on poorly maintained roads. Since it has a 100% air suspension on its spaced axles, imperfections in the pavement are not transmitted to the implement, ensuring greater safety, stability and durability in transport.
The tank has an internal heater which maintains the temperature at 200°C in order to prevent hardening of the asphalt, which would cause the loss of the load and of the trailer, since there is no way it can be remove from the tank once it hardens. According to Kimio Mori, market director for Noma, the tank features something that distinguishes it from the market: a special type of wool for lining which is used in equipment in Europe to maintain the temperature constant and insulated, and which is more efficient linings currently available in Brazil. “We have already produced 16 units for transporters in the Northeast, a region that is growing a lot,” reveals the executive.
According to Noma’s president, Marcos Noma, participating in M&T Expo is an opportunity to show the market that the company will invest a lot in these sectors to expand its share and, in line with the company’s expansion plans, to double its size after the construction of its new factory in the city of Tatuí (SP) in 2013, doubling Noma’s current production capacity. “Products for the mining and infrastructure markets represent 8% of our production and our intention is to grow this volume considerably,” he says.
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