On a similar note, German-based contractor Max Bögl will be on hand to show its new tower-crane method for installing tall wind turbines. Crawler cranes, which typically erect turbine towers, require an aisle about 500 ft long to set up the boom. The new method, designed in collaboration with crane-maker Liebherr, can assemble 3-MW turbines up to 500 ft tall while reducing transport loads and land clearances.
Many full-line manufacturers have blown their research budgets on reducing regulated engine emissions. In addition to engine updates, new hybrid machines will be on display. For example, Caterpillar says it will show its new hybrid excavator, and Liebherr will unveil a hybrid crawler crane; to save fuel, both use hydraulics instead of battery power. Hitachi plans to demonstrate a lineup of advanced hydraulic excavators that get hybrid-like fuel efficiency without the extra costs.
4. China Cools Down
"It's not the best time to do business in Europe," admits Sander Gesink, European marketing manager for Liugong Construction Machinery Co. The company hails from China, which today consumes the largest share of the $110-billion-a-year global equipment business with nearly 40% of total sales.
Despite the European slowdown, Liugong wouldn't miss coming to Germany this April. "Bauma is the biggest show on earth," says Gesink. "For us, it's a very important platform." The recent Chinese acquisitions of Putzmeister and Schwing—by Sany and XCMG, respectively—last year rocked the concrete world. More Chinese deals are likely this year, analysts say, though the question remains whether suitors will have enough cash to close.
Inside China, producers are suffering from overcapacity. "There is a huge population of machines out there that has not been utilized," says David Phillips, managing director of London-based Off-Highway Research. "There's probably between nine and 12 months of stock that is waiting to be sold before production is going to kick in."
5. Niche Markets Heat Up
As infrastructure grows, more regions are joining the list of emerging markets. Hot spots for future growth include Myanmar and Mongolia.
"Both are resource-rich, and both are hardly developed yet," Phillips says.
Meanwhile, traditional pockets of growth have slowed down. Indonesia, another promising market and the official partner country of this year's Bauma event, saw machinery sales triple there from 2007 through last year, when it reached nearly 23,000 units, or roughly 2% of the global construction equipment market. It since "has been badly hit by the Chinese downturn," Phillips adds. Off-Highway Research estimates that, starting in June, sales of equipment in China will rebound to an annual rate of 7% to 8% after dropping more than 20% last year.
