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Used tippers shod supply
Page 68
Page 69
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Despite the growth in major construction projects, and more in the pipeline, sales of new tippers haven't grown as expected.
But in the used sector demand is outstripping supply.
you'd need a long memory to recall a time when building projects dominated the headlines as they do these days.The London Olympics, the new Wembley stadium, affordable housing. major road improvement schemes and local council regeneration schemes have re-ignited the construction industry.
The Society of Motor Manufacturers and Traders reports a rise in new tipper sales last year following an 8% decline during 2004. Daf,Foden,Scania and, most significantly, Volvo all boosted sales of 8x4s.
Foden enjoyed an Indian summer as operators continued to go for the well-proven Caterpillar and Cummins drivelines last year, but the Germans were struggling. MAN-ERF's declining sales in this sector reflected the company's lack of eight-wheelers; Mercedes is relying on its new Axor eight-legger to reverse its downward spiral in the 8x4 sector where its products are seen as too heavy and too expensive.
Flocking to the Japanese
Keep your eyes peeled for Hinos: if Foclen dealers continue to flock to the Japanese banner its figures will rise fast.
But so far the construction boom hasn't filtered down to the used 8x4 market:Things have got so bad that trade is competing with auction for direct delivery and exporters,who serve the major global building projects are whisking away older, less desirable stock, to meet customers' demands.
Warren Cole, director of C&W Commercials in the West Midlands,says:"There's a shortfall in late used tippers, and there isn't a great deal of quality in products five years and under. There are not a lot of two to threeyear-olds around that's been the case for the past 12 to 15 months."
C&W Commercials is well placed to identify the latest market trends as it began to specialise in tippers last year, boosting average monthly sales from four to as many as 12. Part exchanges have reduced but demand continues to rise with health and safety regs boosting demand for tippers with cranes.
At Scania dealership Haydock Commercials, part of the Ellesmere Port franchise, Emma Jacobs has sold just two tippers this year, although four 04/54 P I 14 380s are due back in April.
It seems that while new sales of tippers are up, the old ones aren't coming back. "They are just not available. Companies are expanding and not part exchanging," she explains.-They are even putting on artics and keeping the 8x4s. Some are selling privately."
For Pelican Engineering sales director Ken Grindrod there are "never enough decent tippers in the marketplace" but his situation is a little unusual. As a Foden dealership selling new products, used sales were always a side issue, but with Paccar cutting off the supply of new products, used sales have developed.
"We're still getting our fair share of vehicles back," he reports. "We will stay with Foden. There has been no downturn with sales of the product, but with no new sales we have increased the used sales in the interim to generate profit."
This comment certainly rings true, as Foden enjoyed a strong 2005.selling multi-axle rigids, despite having called it a day with new products.•