Newsline - February 2000

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MEMBERSHIP SURVEY POINTS THE WAY

In an independent membership survey commissioned from BDI Surveys, the FMCEC was given a positive vote of confidence by its members. The Survey also revealed priority areas for future work – helping to form the FMCEC’s key service targets.

BDI Surveys Business Director, Ray Eccles, reported to the FMCEC Council; "This is one of the most encouraging membership surveys we have produced for a trade association. Members gave strong approval to the FMCEC’s work on export services and overseas exhibitions and highly rated the commitment and professionalism of the Federation’s secretariat team." Mr Eccles went on to suggest six areas for future consideration arising from the study. These were:  

  • The high priority placed by members on the availability of good information – particularly statistics.  
  • More opportunities for networking with fellow members in the same sector.  
  • Ways of enhancing the FMCEC’s perceived strength and influence.  
  • The use of e-mail and the WWW.  
  • The development of exhibition services – and income  
  • Adding a social dimension to activities.

The membership survey will be followed by a report on non-members’ evaluations and perceptions of the FMCEC. Both reports will feature in a presentation on future plans at the AGM Conference on Tuesday 8th February at the RAF Museum, Hendon.

FMCEC Executive Officer, Rob Oliver, explained, "I was pleased that so many members took the trouble to respond. The survey has given us an excellent base from which to plan our future programme. We have a number of initiatives in the pipeline which I am confident will ensure our members continue to receive the services they require."

THE NAME GAME

We asked whether the current name of the Federation reflects its purpose and membership. Only one in three respondents said it did. This has got us thinking whether we should consider a name change. Certainly anyone who tackles the name in full (The Federation of Manufacturers of Construction Equipment & Cranes….) may have to draw breath half way through. Let the Editor know if you have any ideas for a new name to reflect the identity of our organisation as it enters the new millennium. There may be a prize in it for you!

DAVID STEPS ASIDE

David Barrell has announced his decision to retire as Director General of the FMCEC with effect from the forthcoming AGM Conference. David has been a Director of the Federation since 1976 – during which time he has witnessed many ebbs and flows in the fortunes of the UK construction equipment industry. His energetic and enthusiastic style has been a trademark of his stewardship. A fuller appreciation will be included in a future edition of Newsline. For nearly twenty years from January 1975, David was also the Secretary General of CECE – an annual appointment which they kept renewing!

New FMCEC Web Site Launched

Following the success of the first FMCEC site, which recorded its millionth hit in November, the site has been updated and re-vamped. The site aims to be not only an information area for the FMCEC but to act as a portal to members' own web sites and to other construction related areas.

The new site has pages for all the FMCEC's activities including: an exhibitions diary, Export Group bulletins and activities, statistics and technical activities. Coming soon is a members only password protected site which will feature a bulletin board, meeting agendas and minutes, "who's who" and exhibition evaluation details.

Please take a few minutes to have a look at the site and let us know what you think. We need your input to keep the site valid and up to date. Please e-mail us with your ideas for new pages and any useful hot links that you would like to see included.

CECE Congress – 29 September to 3 October 1999 - Telfs-Buchen, Austria

This year the CECE Congress was held in Telfs-Buchen in the Tyrol, Austria. This is the second time that the VDMA (the German national association) has organised the Congress. FMCEC was represented by Caterpillar (UK), Construction Europe, Gomaco International, JCB Sales and Komatsu (UK) and the Secretariat and there was strong input to discussions on a range of subjects affecting the various sectors of the industry.

The Congress was held in the Interalpen Hotel, owned by Liebherr, set high up in the mountains and because of the design every room has a stunning view. However there was not too much time to enjoy the views as the days and evenings were full of activity. The only time I enjoyed the view was from the large windows in the meeting rooms during particularly turgid presentations!

The highlight of the evening activities was an ethnic evening arranged in a restaurant high on a mountain and we were told to wear casual clothes and stout shoes, as the road was not made up. The only problem was that on the evening in question it rained and then some! We arrived at the top looking bedraggled but alcohol and good company soon warned us up. We had a traditional Austrian meal and enjoyed the alpine horn and band. After the meal it was still raining and most opted for a lift down the mountain either in a farm trailer or in my case in a large bucket mounted on the back of a tractor. There is no better way to break down national barriers than to stand literally cheek by cheek in a farm tractor bucket with other nationalities in the pouring rain at midnight.

The Congress, which incorporated some useful workshops on a range of subjects;

  • Construction Machinery Vision 2010 - New developments in design and application techniques.
  • Latin America – Market for the future, access deficits for the European construction equipment industry, risks and chances.
  • Small Companies – Big Strategies. 

At the Congress Mr H Wiedenhues of Krupp Fördertechnik (Germany) retired as President and was succeeded by Mr M Van der Linden of Caterpillar (Belgium). Mr Arghinenti of Fiat-Hitachi Excavators (Italy) became 1st Vice President and Mr H Peters of Volvo Construction (Sweden) became 2nd Vice President.

Since Congress Mr Wiedenhues represented European manufacturers at the Trans Atlantic Business Dialogue meetings held in Berlin, where pressure was again applied to the European Commission to make faster progress with the harmonisation of road regulations throughout Europe. Representations were made to US government officials concerning the effects of the Clean Air Act requirements in the various states of the USA and their product liability laws.

Like the Federation, CECE is also reviewing its past, current and future range of activities on behalf of manufacturers throughout Europe and the Federation will play an active part in the ongoing discussions.

Statistical Meetings

The Congress meetings approved both the Intercontinental Policy Manual and the Intercontinental Procedures Manual. Other international associations have since done the same. These decisions are the culmination of several years of discussion. Now all companies participating in the statistics can be clear about the principles underlying statistical gathering and the rules to follow.

A survey is being undertaken of detailed company procedures in order to assist analysis of data. Another survey is being carried out on reporting locations to help analysis of under/double reporting. The results will be available in the next couple of months.

The Secretariat for the International Statistical Committee passed by rota on 1st January from Pam Hyde, at the Federation, to the Japanese association, CEMA for the next two years.

The statistical software developed for CECE by GPS has not proved satisfactory and a new web based solution (Java software running on Oracle) is now proposed. Priorities include that the new software support all exchanges, be secure, be able to manage revisions, have import & export functions and include integrated model charts. Jacqui Nother-Smith from JCB is a member of a small Working Group of key statistical people working with the developer of this software.

New monthly shipment statistics have been set up for telescopic handler and two & four wheel drive rough terrain fork lift trucks. Jacqui Nother-Smith, JCB, is the CECE Product Chairman for these exchanges as well as remaining Product Chairman for Backhoe Loaders.

World Trade Committee

The CECE and international association meetings of this Committee, chaired by Richard Sharp of JCB, had some sharp words of criticism for the UK government on the implementation of the Machinery Directive. The FMCEC was urged to put pressure on finance and insurance companies and the other national associations were asked to write to the Commission to complain that the UK was not implementing the law.

The state of world trade was closely examined and presentations were given by EMI and CIMA on the North American economy, by CEMA on the Japanese economy and for CECE by Richard Sharp, JCB, on Western Europe and the rest of the world. Copies of the presentations are available from the Federation upon request.

Strategic Product Planning 

Dr Joe Harder from OneStone Consulting led a very interesting Workshop at the Congress which included reviewing customers, adapting products/services to customers & portfolio analysis. Contact Sharna at the Federation if you would like a copy of the slides.

Engineering Report

The Technical Commission met all day on Thursday and for half a day on Saturday. The very full meetings covered :

  • Noise Directive, which is now being implemented by the member states.
  • The Road Travel Directive which has apparently come to a standstill because of a lack of EU funding. 
  • Physical Agents (Vibration) Directive discussion on this important and far-reaching Directive took a good part of the meeting. The Directive will impact heavily on the construction equipment industry as our equipment’s produce considerable vibration levels. It was decided to set up a CECE Working Group to formulate policy on this Directive – David Monk will be the FMCEC representative. 
  • Trans Atlantic Business Dialogue (TABD) issues that would be discussed in Berlin. This item was the subject of a lengthy but productive informal evening workshop producing a common CECE stance. 
  • Mike Smith gave a presentation on the UK’s approach to plant security. The presentation was well received and it is clear that other nations are taking an increasing interest in this Home Office initiative to reduce plant theft.

 

Will Construction Equipment Statistics be Affected by the New Rules for Agricultural Machinery Statistics? 

On 20 September 1999, the Commission issued a press release about the agreement of tractor & agricultural machinery manufacturers to alter their statistical rules. This statement is a compromise interpretation about running the statistics so as to prevent disclosure & promote competition. As a result the Commission closed many litigation files of several years standing.  

Legal advice given to one of the companies involved, a manufacturer of construction as well as agricultural equipment, is that the new rules equally apply to construction equipment statistics in the European Economic Area.  

This view is not acceptable to CECE but data for the month of November 1999 onwards will not be published until clarification is received. If the new principles do apply, the penalty for the participating company could be a fine of up to 10% of gross revenue for ten years. 

The new principles established by the Commission are that: 

  • Individual data, identifying brand or model, may not be exchanged unless it is over 12 months old.
  • Data under 12 months old may be exchanged provided that each data cell contains data supplied by at least 3 entities belonging to different industrial or financial groups. If there are less than 3 participants, data may be exchanged if there are more than 10 units reported in each data cell.

The interpretation of the above principles differs from the rules currently used for CECE and intercontinental exchanges because, although a minimum of 3 participants must report in each data cell, these can be zero returns. In fact the majority of cells show zero in any given month as many of the countries are small & the breakdown of product is detailed e.g. Luxembourg, crawler excavators, 11-12 metric tons, for August. Although there are over three manufacturers offering machines for sale in this data cell, no sales are necessarily made & a zero would be shown.

The application of the new rules to CECE and intercontinental statistics would severely disrupt the flow of market information and would affect year to date data (under an anti-deduction rule) as well as monthly data. 

The CECE lawyers advise that the Commission’s new rules do not apply to construction equipment that is a different industry with many more players. In November, CECE therefore requested clarification by the Commission, DG4 - Competition, on whether the new rules would apply to construction equipment. The Commission then made a formal request that CECE supply full details of the statistics in which member companies participate so that they can decide if the exchanges infringe Article 81 of the Treaty of Rome. Details were submitted on 2 December.

 As an answer will take some months, CECE is also applying to the Commission for negative clearance to enable data for November 1999 onwards to be published in the interim. CECE statistical experts, who include Richard Sharp from JCB, meet to discuss the matter with the Head of Unit DG4 on 17 January. 

Transport Law and Management 1999 Handbook

 All FMCEC members are members of the Freight Transport Association (FTA). We have received a copy of the useful FTA handbook entitled Transport Law and Management. The handbook covers: 

  • Fleet running costs
  • O-licence changes
  • Packaging waste and dangerous goods requirements.
  • The effects of the devolution on transport.
  • Social legislation.
  • Legislation and transport policy requirements. 

Copies of the 79 page A5 booklet are available from Freight Transport Association, Tel: 01892 526171 Fax: 01892 552359