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Market Report: Compact Plant

Terex teamwork

An on-going design and manufacturing improvement programme is enabling Terex to increase production and introduce new machines. Alan Guthrie reports from its Coventry facility.

A key challenge facing global manufacturers serving diverse markets with a wide range of equipment is ensuring that operational efficiency is maximised. This is all the more demanding when extra branded lines and production facilities are added through acquisition, and which have to be incorporated into the product portfolio without alienating existing customers.

This has been the case with Terex, which forecasts a 2006 turnover figure of more than $7 billion and has 49 manufacturing facilities worldwide. It operates in five business divisions, offering equipment for construction, mining, aerial work platforms, materials processing, mining and road building, amongst other markets. The Construction Division’s offering includes mini/midi excavators, compact loading shovels, telescopic handlers, small wheeled loaders, backhoe loaders, site dumpers and compaction equipment. In recent years it acquired and integrated businesses such as Benford, which offered compaction equipment, dumpers, mixers and concrete finishing equipment, and the mini excavator manufacturer Schaeff.

Many Construction Division products are now made at the impressive Terex facility in Coventry, established in early 2003. Employing approximately 500 people and offering more than 20,000m2 of manufacturing space, it is one of the first Terex operations to have introduced on-going strategies to streamline all aspects of production. “We are instigating procedures similar to those revolutionising the automotive industry,” contends Marketing Manager Adrian Hyde. “We are implementing Terex Improvement Programmes (TIPs), each examining every aspect of a specific operation. All staff can suggest how improvements can be made, and every element can be benchmarked.

Dramatic results

“TIPs analyse aspects like component supply, assembly, production line layout and quality control. The results have been dramatic. We are making more products from smaller production areas, and output is faster. This will facilitate the introduction of new products here at Coventry, and the whole workforce feels involved, since this holistic approach means we work as one large team.”

All products are now being offered under the Terex name. Initially, when Schaeff and Benford were acquired, their products were marketed with joint branding, but the company now wants to stress the breadth of the Terex operation. “We took one of the largest stands at SED this year and exhibited a huge variety of equipment. Many hirers were impressed when they appreciated the number of products they could source from the one supplier, and they realise that, rather than being a group of smaller companies, we are now a consolidated player with a major brand.”

Included in the compact plant offering are mini excavators from 1.5-12.5 tonnes, made at the former Schaeff facility in Germany. Two zero tail swing models are also available, with operating weights of 3.65 tonnes and 5 tonnes, plus a 2.5-tonne reduced tail swing machine. “This is a market with great potential for us,” states Adrian Hyde, “particularly in the segment below 3 tonnes. More hirers are looking for 2.5-tonne machines that can be towed on a trailer and comply with weight regulations, and the amount of building and landscaping work being undertaken on housing estates means increased demand for smaller minis.”

Attachments for mini excavators of all sizes are offered, including hydraulic hammers and transverse cutting units that can be used to create trenches, cut slots and even for operations such as grinding stumps. Examples of these innovative products will be on display on the Terex stand at the Executive Hire Show at the Ricoh Arena in Coventry, on 31 January and 1 February.

Also popular is the Terex range of mini dumpers. High-discharge, hydrostatic drive versions are available with operating weights of 1410kg, 1440kg and 1485kg, with payload capacities of 850kg, 1000kg and 1200kg respectively. Seven power tip four-wheel drive models are available with skip capacities of 2000-10000kg, as well as six power swivel versions that can carry loads from 2000-6000kg. “The success of the compact high-discharge machines reflects the popularity of mini excavators,” states Adrian Hyde. “Rather than moving house, many homeowners are building extensions and conservatories, and they are hiring equipment with the narrow access characteristics that such projects frequently demand.” The line-up also includes three all-wheel steer dumpers, with rigid chassis that are said to avoid creating crush zones and to give greater stability. Power tip models weighing 4000kg and 4045kg are available, with skip capacities of 6000kg and 700kg, together with a 4340kg power swivel model that has a 6000kg payload capacity.

Other Terex machinery available includes tandem and pedestrian rollers, such as the MBR71 pedestrian roller that is configured with a high-speed trailer and a mobile breaker, which is said to be a popular choice for work involving road breaking, paving and surfacing. Compaction plates designed for low HAV levels are offered, including the BPC1535 and BPC 1850, along with cement mixers and concrete poker drive units.

With the increased production capacity at the Coventry facility, and TIP initiatives being introduced at other Terex plants over time, a substantial number of new products are expected to be launched next year. “Hirers will see the Terex name even more frequently, and we see a significant opportunity in this market. Everything we do is being driven by the need to identify and meet customers’ needs, looking at the whole lifecycle of products,” contends Adrian Hyde. “Our new procedures are enabling us to develop better designs, produce machines more efficiently, and give enhanced service.”

T 024 7633 9400
W www.terexce.com

Executive Hire NewsArchivesNovember 2006Market Report › Terex teamwork

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