palfinger at a glance

Industry Review
Consolidated Management Report / Market Review
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Railway infrastructure
In 2011, the global market for railway maintenance and construction vehicles was marked by
numerous projects, but only few actual decisions were made and few contracts were awarded. As
a consequence, the outstanding product volume increased enormously in the course of the year. It
was not until the fourth quarter that first decisions on contracts and orders were made, primarily by
European railway companies. It is expected that further decisions on large-scale projects, first and
foremost in the Scandinavian countries and in Germany, will be made in 2012. Huge medium-term
potential is also available in the French railway market, as investments in maintenance and repair
remained low during the past decades and there is a lot of catching up to be done.
Numerous investments in railway
infrastructure will soon be taken.
In the Middle East, railway transport is gaining momentum as a future-proof and environmentally
friendly infrastructure alternative. Specific investment decisions were made primarily in Saudi Arabia,
Dubai and Israel. Moreover, an economic revival and an increase in investment in railway infrastructure
are to be expected in the Maghreb countries as a consequence of the Arab Spring. Turkey has
been a hotspot of railway investment for quite a while now.
China is the country with by far the greatest potential for the future. The expansion of the high-speed
network was advanced quickly, disregarding the need to establish adequate service and maintenance
structures. The awareness that such structures are indispensible was raised later only as a
consequence of several delays and, unfortunately, also some serious accidents. The pressure to
acquire efficient maintenance machinery is thus massive and the local manufacturers are not yet in
a position to provide products at an adequate technological level. As a consequence, a short-term
increase in demand for imports of efficient state-of-the-art maintenance equipment is expected to
take place. In the medium term, the percentage of locally manufactured equipment is probably
going to increase, given that the demand is huge.
Service busineSS
Rental companies are an important customer group for PALFINGER products such as access platforms,
particularly in Europe. After the boom years 2006 and 2007, the industry suffered a decline
of up to 60 per cent. In France and Spain, in particular, a significant consolidation of markets took
place, both in manufacturing and in the rental industry. 2010 saw the onset of recovery; especially
the DACH region (Germany, Austria and Switzerland), the Benelux countries, Scandinavia and the
Russian market have recently generated significant growth.
According to the BBI, the German Association of Construction Machinery, Construction Equipment
and Industrial Machinery Companies, a growth rate of 12 per cent was achieved in the rental of
truck-mounted access platforms in 2011. The investment ratio of the rental companies in Germany
increased, on average, from 15 per cent to 20 per cent, with 35 per cent thereof being used for
replacement investments and 65 per cent being invested in the expansion of machinery.
48 palfinger Annual Report 2011