In the aggregate industry, a number of portable plant manufacturers have expanded and diversified their offerings in recent years, venturing into new product categories. Among these companies is Superior Industries Inc.
John Garrison, vice president of sales at Superior Industries, recently offered PP&E some insights behind the decision-making required of manufacturers that venture into new product categories. He also offers an outlook for aggregate-related portable plant sales in 2017, as well as a look ahead to the impact of the upcoming ConExpo-Con/Agg 2017 in Las Vegas.
PP&E: Several manufacturers have expanded the breadth of their portable plant offerings in the aggregate market in recent years. In 2014, for example, Weir Minerals expanded its offerings with the acquisition of Trio Engineered Products; McCloskey International just announced the launch of a washing and classifying division; and Superior Industries, of course, established a crushing and screening division last year. What are the key factors driving manufacturers in this area to diversify?
JG: More manufacturers are working to expand their range and be a complete solutions provider. While customers have been brand specific on certain machines for years, many producers are interested in having a strong single source offering great support. The packaging of equipment on portable or modular plants and expanding product categories has been a focus for many over the last few years.
PP&E: Should the aggregate industry expect further diversification among portable plant manufacturing companies, or even for new manufacturers to emerge?
JG: Yes, we have seen new track plant providers coming to market pretty regularly the last few years. There are a number of fabricators that will build you a wheeled chassis, but only a few crushing and screening companies that offer complete factory plants. We see the need for portables continuing to grow as the rental market has been strong for many of our dealers. Capital budgets for many producers haven’t allowed them to buy new gear, so rentals have been filling the need to keep up with production demand.
PP&E: Is the entry of new, foreign-based manufacturers a concern or a threat to existing players?
JG: There will always be the lower-cost, offshore manufactured companies in the market. They do fill a need for price-sensitive customers. The struggle is often getting parts and service for the equipment.
PP&E: What are your sales expectations for the coming year? What outside factors will impact portable plant sales?
JG: We have a positive outlook for 2017 and expect good growth. We are already booking projects for 2017 and have many things in the works. ConExpo-Con/Agg will be a great opportunity to share all of our new products and generate new leads. With some federal spending planned in 2017, we hope to see producers replacing equipment and expanding or upgrading plants.
Portable plant sales are often impacted by dealers’ conversion rates of their existing stock. If many dealers end the year bringing plants back into their inventory from rental, then it will affect volumes of new plants from us. On the other hand, as production demand grows, there may be an increased need for plants to come in and do the work.
PP&E: What were your impressions of MINExpo International 2016?
JG: MINExpo had a larger turnout than we expected, so we were quite happy. The people attending seemed to be key decision-makers. Having ConExpo-Con/Agg only months away, there were concerns that attendance might be down.
PP&E: One trend at MINExpo was the idea of data collection and the use of that data to coordinate all aspects of a mining operation. Do you see this concept translating to portable plant operations. If yes, what developments should operators expect to see in the coming years?
JG: Yes, we’ve had more interest from customers in automation, condition monitoring and remote monitoring of the equipment. Operators should expect to see a higher level of products and options for plants to be automated and have the ability to track production, potential service needs and more from a computer or smartphone.