INTERVIEW
12
access
INTERNATIONAL
MARCH-APRIL 2014
but recently it’s become more-and-more of an
issue, so something like a push around scissor
lift or a mast is something that’s growing in
popularity.”
The market for mainstream products like
self propelled booms and scissor lifts is also
unsaturated, which means all the rental
companies are doing well.
Mr Landsberg estimates there are around
4000 AWPs in South Africa, with an annual
market of 500 – 600 machines. “The country
could, in theory, have 40000 machines.
“Growth is on our side, in just over two years
we have grown from zero to a fleet of 500 and
we can double that fleet in the next two years.
That’s the type of growth happening in this
market.
He adds, “With crawlers and mini-access
it’s something new, so there is a lot of
development work to be done and it’s going
to take some time before there is real traction.
We have been supplying Teupens for 14
months and we are happy with the progress
but we don’t sell them by the dozen.The same
is true with PB narrow scissor lifts, they take a
little selling.”
However, the market potential is being
hampered by the economic climate. “Demand
is there and growth is there but the sale
of new products is being curtailed by our
exchange rate. We have had a weakening
in our currency of over 50% in the last
18 months; so we are paying double for
a machine, and that’s without the price
increases,” explains Mr Landsberg.
As a result there has been a proliferation
of badly maintained used equipment coming
into South Africa. “Unfortunately, a lot of it
is extremely old. We have machines that are
12 to 15 years old coming in and it’s really a
dumping ground for the European markets.
There is no requirement for maintenance
reports or anything.
Goscor is working hard to bring the
industry up to scratch. “Through the industry
bodies we have tried to control the quality of
machines coming in, but to date that has not
been particularly successful. But we do believe
there will be regulation coming in.
“Obviously, that creates opportunities for
people in the parts and maintenance side.
So, even though we haven’t been involved
with selling those products into the market,
we have been doing a lot of support for the
companies that did buy those machines.”
Southern Africa
Goscor High-Reach is also growing its
distribution network outside South Africa.
“We have representatives in Botswana,
Namibia, setting up in Mozambique, as well
as expanding in South Africa.”
Safety is also stepping up in the country,
thanks to the Institute for Working at Height
(IWH), recognised by local authorities as the
professional body for the industry.
Recently IPAF had a meeting with
the IWH. Goscor High-Reach has itself
undergone an IPAF audit and had four of its
employees trained as instructors. “We will be
the first IPAF accredited training centre in
Southern Africa, all that will be completed in
next couple of weeks.
Outside South Africa the market for AWPs
is much smaller. Last year Botswana was
the biggest external market, while Namibia
was second with sales of 20 machines in the
country, that however, is changeable year-to-
year.
“In Mozambique there is a lot of
development around gas, but it’s starting from
a very small base, so it will be years before
there is a viable market for powered access.
The company also covers the Democratic
Republic of the Congo in the north west of
Southern Africa, along with Zambia in the
east, and islands like Madagascar, Mauritius
and the Seychelles. Customers outside South
Africa are all end users - there is no rental at
all – and account for just 10% of total sales.
Another export market with great potential
is Angola. “It’s very difficult to do work there,
and it has a specific dealer, so we do not touch
that,” explains Mr Landsberg.
Mr Landsberg says, “Demand on the rental
side is huge, more so than the sales side
because of our currency being so bad at the
moment; a lot of people don’t want to invest.
The currency might come back and they might
be able to pick it up cheaper in six months’
time. “
Turning to utilisation rates, Mr Landsberg
says they typically stand at 50% to 70%
worldwide, while in South Africa they are
around 85% to 95 %. “That’s because of the
current economy but there is also a lot of
growth to be had.”
Rental in the country didn’t get started until
the late 1990s, before that there was very little.
According to Mr Landsberg it was JLG that
led the way by effectively giving small rental
companies machines, and then taking a large
percentage of the takings, (around 70%).
“Five companies were set up with that
concept. We decided not to go down that
route and the only one that was slightly
different at that time. It has grown from
originally 100 machines between those
companies, if that, to where many of those
companies still exist, the smallest with about
40 machines now.”
Mr Landsberg adds, “We are excited about
the market, from rental and end users.The
rental rates are good, not spectacular, but
better than markets like Europe where you
typically find a lot more competition, although
there are other factors too.”
Another factor in which South Africa
differs from European countries is transport.
“The distances are greater and the working
environment is a bit harsher. It’s a very dry,
dusty environment sometimes. You might pick
up machines and take them 1800 km. In the
UK the proximity means the repair response
time can be minutes; if you work in South
Africa that’s not going to happen.
“When we look at rates compared to
Europe you also have to bear that in mind.
We rely on manufacturers’ quality control.
We can’t send a machine up to Zambia and
have it break down. So we are interested in
quality machines that are simpler and easy to
maintain, with hydraulic controls.”
AI
Inustrial application for an
articulating boom
Scissor in routine
retail application
