To get a sense of the state of the aerial market, Rental spoke with Matthew Elvin, CEO of Snorkel and Xtreme Manufacturing, who's predicting solid growth for the next 18-24 months. Following is an excerpt from that discussion:
Rental: Where do you see the aerial market going in 2018?
Matthew Elvin, CEO, Snorkel & Xtreme Mfg.: The global aerial market has started strongly in 2018, and most, if not all, customer sectors are feeling confident about the future and the equipment they need. We are really seeing positivity in most of our markets currently, and for Snorkel, this is being helped along by our continued expansion of our global distribution network, both with the appointment of new independent dealers, and the opening of new wholly owned distribution locations, such as Ahern Canada.
Rental: How does this compare to last year?
Elvin: I would say there is greater confidence in the market this year. The customer base is acknowledging this and they are understanding that equipment availability may be reduced, compared to prior years. I think what we are seeing is actual growth this year, not just replacement as we have seen in previous years.
Rental: What are the main factors driving the direction of the market?
Elvin: It’s really the number of projects currently underway, and the number of projects that are being planned to start that are making rental companies look at how their available fleet will be consumed, and the effect on utilization rates. I think this is what is driving the further investment in equipment.
Rental: What’s going on globally; how do the various markets compare?
Elvin: Globally, we are seeing many markets that are growing. We are seeing continued or increasing demand in most of the markets that we are active in currently. Europe is very positive, and in particular Southern Europe is strengthening. Scandinavia is continuing to perform well, and the UK is stronger than we expected to see following the Brexit decision. China is a market that is being closely monitored, and we are continuing to see growth and find new opportunities, particularly since the opening of our manufacturing facility last year in Jintan, China, which produces some of our core products for the domestic market.
Rental: How will materials prices affect the aerial market?
Elvin: All manufacturers will be under pressure to increase prices, driven by increases in underlying commodity costs, and/or the implications of tariffs. While no-one enjoys raising prices, there is only so much that can be absorbed before it has to be passed on.
Rental: Is the industry ready for the new ANSI standards?
Elvin: Any manufacturer that sells machines now into the CE markets are technically ready for the new ANSI standards. I do believe that customers in North America will still have a learning curve when the new compliant machines are delivered, and we are working with our customers to help them with this process.
Rental: What do you see in your crystal ball for the future?
Elvin: In line with most of our industry associations and our peers, we see the market holding strong at least through the next 18-24 months, barring any unforeseen challenges. Certainly, the underlying business foundation is solid, however we may feel some bumps in the road from the uncertainty around economic and political situations, such as tariffs, trade wars and the realization of Brexit.
