Crane suppliers are optimistic about the future sales of cranes in Central Europe

 Despite economic challenges in Central Europe exacerbated by Brexit and US-led protectionist policies, hoist suppliers remain bullish about future sales in the region. Tom Woerndl reports.

Central Europe has long been the envy of nations around the world. After all, countries like Switzerland, Germany and Austria boast high living standards, developed economies and well-funded welfare states.

However, global political and economic insecurity—fuelled by the protectionist policies of the US—as well an uncertainty in Europe over Brexit and the future of the European Union, has led to some stagnation of key industrial sectors in this region.

This sobering prognosis is having an effect on sales of hoists, as confirmed by Oliver Riese, export manager at German crane manufacturer Kuli, which is based in North Rhine-Westphalia, in the west of the country. “The European markets in most areas are still weaker than they are in other regions of the world,” he says.

“Brexit has caused significant insecurity and prevented companies from investing. As a consequence, maintenance and service of existing technology is increasing and, as we are active in this segment, we are able to profit from this kind of change in the market.”

Challenges in the region have been made worse by a slight decline in Germany’s economy, which Riese says was “mainly caused by international trade restrictions”.

“In spite of this, our home market was very strong this year, even though North Rhine-Westphalia’s economy is strongly linked to the UK. The problems in Britain don’t seem to have had a significant influence on our customers in this region.”

Supplying a wide range of crane products, including hoists, wheel bogies and controls, Kuli’s business is divided into two main segments: the sale of complete cranes and the supply of crane kits, where the company additionally works with third parties.

“In the market for complete cranes we are facing a trend of individualisation,” notes Oliver Kempkes, managing director at the company. “These days, customers may have an idea about—for example—the intralogistics of a crane, and we can offer a turnkey solution to meet these needs. Because our technology is designed with a modular construction in mind, and with a high level of engineering expertise, we are able to supply such turnkey systems at competitive prices.”

Kempkes adds that safety and durability continue to be two buzzwords for its customers in Central Europe. “The robustness of our equipment is a deciding factor for many, as well as the fact that we manufacture all parts, including motors, gears, pinions, drums, and controls, out our own facilities in Remscheid, Germany,” he explains. “Customers often note that by ‘making instead of buying’, we are able to secure the consistent quality of our products.”

Specifically, the company says that its inverter-controlled crane—featuring an energy recovery system—is becoming more and more popular in the region, thanks to rising energy costs.

In terms of the industries driving demand, Kempkes notes that Kuli continues to have a strong business relationship with steel mills and the warehousing sector, while it has also recently supplied projects in the fields of prefabricated concrete parts, cement works, tools fabrication, and for large infrastructural projects.

“All of our equipment is made to be incredibly robust, so we are also heavily involved in projects where our cranes are used in harsh environments,” adds Kempkes.

Currently, the company is working on a number of large-scale projects in the region, including an infrastructure improvement programme that involves the use of a large gantry crane to move huge quantities of soil as part of an almost 24/7 excavation process.

Crane suppliers are optimistic about the future sales of cranes in Central Europe