Rock Products

AUG 2019

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70 • ROCK products • August 2019 www.rockproducts.com of tariffs they are currently at a competitive disadvantage in the global marketplace. Progress toward a U.S.-China trade deal during the G-20 Summit in Osaka, Japan, raised hopes by equipment manu- facturers for a prospective deal to end the ongoing trade war between the two economic superpowers. "We're encouraged by the return to a more constructive dialogue between the United States and China. Pumping the brakes on any further tariffs is good news for U.S. consum- ers, American farmers, and our industry's 1.3 million men and women," said Kip Eideberg, AEM's vice president of government and industry relations. "While we support the administration's efforts to encourage long-term structural reforms to China's trade and industrial policies, the pro- tracted trade war fueled by dueling rounds of tariffs has so far not accomplished anything other than making it more expensive to manufacture in the United States. The best way to ensure that equipment manufactures are successful and continue to create jobs in America is to immediately put an end to all tariffs." The United States has already placed tariffs on $250 billion in goods from China, including many different types of con- struction and agricultural equipment and parts. In response, China continues to put in place reciprocal tariffs targeting a variety of U.S. products including manufactured goods and agricultural products. Before the G-20 meeting in Japan, President Trump had threatened to expand those tariffs to additional $300 bil- lion of imports from China or about all Chinese imports to the U.S. AEM continues to highlight the economic damages caused by these ongoing tariffs and is pressing the admin - istration to find alternative ways to pressure our trading partners for unfair trading practices. The Future With the advent of electric vehicles entering the construction, agriculture and mining sectors (CAM), what does the future hold for the industry, and what effect will this have on the used machinery market globally? According to Peter Clarke, founder and CEO of heavy machinery auctioneers Yoder & Frey, the Kyoto Protocol is the objective of the United Nations Framework Convention on Climate Change (UNFCCC) to reduce the onset of global warming by reducing greenhouse gas concentrations in the atmosphere. In order to comply with this, globally, the indus- try is striving to cut emissions, making road transport cleaner by setting strict new carbon dioxide emissions standards for all vehicles, passing new legislation on the engine emissions on Non-Road Mobile Machinery (NRMM). This paved the way for new emissions standards for carbon monoxide, nitrogen oxides and particulate matter from all NRMMs ranging from hand tools to construction machinery, with the aim to ensure that from 2030 onwards new vehicles will emit on average 37.5% less CO2. These initiatives have paved the way for new technologies to drive road-going and non-road going vehicles, such as cleaner fuel, hybrid fuel sys- tems and battery power. The on-road electric vehicle industry is heading for a vicious fight with private cars set to see a collapse in sales as more people move to cities using more shared transport, rather that running private vehicles. In contrast, off-road electric vehicle OEMs are looking ahead to prosperous growth, in particular, for the construction, agriculture and mining sec- tors, known as CAM. Compound Growth In the next 10 years the electric vehicle market in the CAM sector is predicted to burgeon. The sector has already been employing robots, drones, hybrid and pure electric vehicles, with approximately 15% of CAM vehicles rolling off the production line being electric. Over the next 10 years that number is expected to increase, when in 2029, the numbers are predicted to be close to 100%. With such a huge demand for new clean electricity to power for those vehicles, further demands will be put on new tech- nology to generate that power, on and off grid, with delivery of that power requiring new infrastructure. The CAM market is projected to grow at a compound annual growth rate (CAGR) of 4.52% with a market size by 2029 of in excess of $200 billion from $146.17 billion in 2018. The CAM vehicle business will grow more than six-fold in value by 2029 grabbing records for both the highest volume electric vehicles (EVs) and the highest unit value. OEMs are innovating at a frenetic pace, with some of the minor players innovating faster, than many of the giants, of which a few seem to be sleeping through this future proofing period. Which technologies win? Which sectors go straight to pure electric and which need the hybrid interim stage? With even 300kW mining trucks working well as pure electric what is the place for fuel cells? The Expanding Market The earthmoving equipment category is the largest segment of the CAM market, by category, with much of construc- tion equipment used to carry, dig, spread, or move earth or materials. In comparison, the material-handling equip- ment category is the fastest-growing segment in the market, including machines that manufacture, store, stack, distribute, deliver and recycle. Aggregates Industry Almanac Equipment Update

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