# Crane crisis hits Dubai as prices soar to record high (2000 Cranes in Dubai!!!)



## Dubai-Lover (Jul 4, 2004)

this could be the reason for a few delayed projects



Crane crisis hits Dubai as prices soar to record high 









Tall story: Demand for cranes in the UAE far outweighs the supply needed. 
Record construction activity in Dubai has sent the cost of mobile cranes soaring by up to 30% this year, while delivery times for some tower cranes has hit 14 months.

Contractors from Qatar, Kuwait and Saudi Arabia are also descending on the emirate to hunt for machinery.

The trend has pushed up the price of second-hand kit as 
contractors and hire companies are willing to buy older cranes to keep up with demand.

A spokesman for Al Wasit Machinery said that prices for some models of mobile cranes in the second-hand market had increased by between 20% to 30% over the course of the year.

In the mobile crane sector, 90% of new cranes being imported into the market are going direct to the hire companies, leaving little available for other buyers, and leading to price hikes.

Bernd Wittenberg of the Dubai office of crane giant Liebherr, said: “Certainly, second- hand mobile cranes are becoming a bit of a problem.

“And for new mobile cranes we have delivery times of between six and 14 months. If you order a 70-tonner today, you will get it in September next year,” he added.

The hire market has also been hit, with many crane hire companies being forced to turn potential customers away.

“There is a huge shortage of cranes and there are people coming from Oman, Bahrain and Qatar hunting for cranes.
“Because of the demand, many buyers are not as fussy about the make or model,” said Arty Wartanian, general manager of Gallagher International. “I am sorry to say we have to turn people away everyday.”

Manufacturers are now increasing capacity in a bid to keep pace with soaring demand from the UAE construction sector.

“The market here for tower cranes is extremely demanding and no manufacturer today has enough capacity in their factories to meet that demand,” says David Semple, sales director for Manitowoc Crane Group, which owns Potain. 

In a bid to keep pace, Potain has increased its manufacturing capacity for tower cranes by a massive 50% in its French factory over the course of 2005, and is also opening a new factory in China, which will double production. 

But despite these increases in manufacturing capacity, 
Semple says they’re still far from being able to meet the requirements of Dubai. The result is the market is opening its doors to new suppliers.

“For a market which used to be dominated by only two crane manufacturers — ourselves and Liebherr — it is now a much more open ground for other players. Italian manufacturers are now supplying all the cranes at the Dubai airport expansion and the Chinese are also coming in; in the UAE they sold 59 tower cranes in 2005.”


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## Dubai-Lover (Jul 4, 2004)

Tower cranes on demand as pace of construction hots up









Golden Sands Tower: Luffing jib tower cranes, such as the ones being used on this development, are becoming increasingly popular in Dubai.

The number of high-rise construction projects in the uae has led to an unprecedented demand for tower cranes
Construction activity in Dubai has reached record levels with an estimated 2000 tower cranes operating around the emirate.

It is the highest concentration of tower cranes anywhere in the world and demand is now far outstripping supply. So much so that lead times of up to 14 months for particular types of crane are not uncommon.

From Dubai Marina and Festival City to Jumeirah Beach Residences and the airport expansion, the city is a lucrative market for tower crane manufacturers and suppliers. But the frenetic pace of high-rise construction in the emirate means that the demand for these giants is far outstripping the supply. 

“The market here for tower cranes is extremely demanding and no manufacturer today has enough capacity in their factories to meet that demand,” says David Semple, sales director for Manitowoc Crane Group, which owns Potain. 
In a bid to keep pace, Potain has increased its manufacturing capacity for tower cranes by a massive 50% in its French factory over the course of 2005, and is also opening a new factory in China which will double production. 

But despite increases in manufacturing capacity, Semple says they’re still far from being able to meet the requirements of Dubai. The result is the market is opening its doors to new suppliers.

“For a market which used to be dominated by only two crane manufacturers — ourselves and Liebherr — it is now a much more open ground for many other players. Italian manufactures are now supplying all the cranes at the Dubai airport expansion and the Chinese are also coming in a big fashion; in the UAE they sold around 59 tower cranes in 2005.”

Contractors from Qatar, Kuwait and Saudi Arabia are also descending on the emirate to hunt for increasingly scarce machinery.

The trend has pushed up the price of second hand kit as contractors and hire companies are willing to buy older cranes to keep up with demand.

A spokesman for Al Wasit Machinery said that prices for some models of mobile crane in the second hand market had increased by between 20% to 30% over the course of the year.

In the mobile crane sector, approximately 90% of new cranes being imported into the market are going direct to the hire companies, leaving little available for other buyers and forcing prices up.

Bernd Wittenberg at the Dubai office of crane giant Liebherr, said: “Second hand mobile cranes are becoming a problem.
“And for new mobile cranes we have delivery times of between six and fourteen months. If you order a 70 tonner today, you will get it in September next year.”

The hire market has also been hit with many crane hire companies being forced to turn potential customers away.
“There is a huge shortage of cranes and there are people coming from Oman, Bahrain and Qatar hunting for cranes.
“Because of the demand many buyers are not as fussy about the make or model,” said Arty Wartanian, general manager of Gallagher International.

With construction activity gearing up still further in the UAE, Qatar and Saudi Arabia, that situation is unlikely to change quickly.


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## malec (Apr 17, 2005)

Anyone surprised?


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## Moody (Feb 16, 2005)

Hehee, i'll buy myself one and sell it in the Black Market


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## malec (Apr 17, 2005)

As said before, invest in the crane business now and then when the construction stops move everything to the demolition business 

I guarantee you'll be filthy rich


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## Shodan (Oct 15, 2005)

Simple supply and demand. Surprising? Nope.


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## source26 (Jun 27, 2005)

second hand old cranes and damaged ones = recipe for disaster


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## Black_Shaheen (Jun 10, 2005)

source

who in their right mind would buy a damaged crane ? I dont see any problems with buying second hand I mean people have bought second hand planes which are far more complicated pieces of equipment. Cranes remain to be quite simple, robust and easy to maintain


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## Ben_Burj (Aug 28, 2005)

Dubai-Lover said:


> Liebherr



:rofl::rofl::rofl:


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## dubaiflo (Jan 3, 2005)

eh that's a huuuge german company my friend. 

well not surprising at all.
but this could indeed cause delays and make construction more expensive.


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## Ben_Burj (Aug 28, 2005)

dubaiflo said:


> eh that's a huuuge german company my friend.


I know that it is German from the name, in fact I was laughing on the name lieb+herr


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## ragga (Jan 23, 2005)

malec said:


> As said before, invest in the crane business now and then when the construction stops move everything to the demolition business
> 
> I guarantee you'll be filthy rich



thats EXACTLY one of the things im doing now 

I get second hand ones from $100,000 to $900,000 depends on year / model, I cant believe theres such a long waiting list. I alreayd have buyers for them, but if anyone knows any more buyers let me know.


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## AltinD (Jul 15, 2004)

dubaiflo said:


> eh that's a huuuge german company my friend.


I thought they were Austrian. However they make very good refrigerators also, but mostly for retail (shops etc) and industrial use.


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## dubaiflo (Jan 3, 2005)

lol you just need some money to put it some where and you will get even richer.
typical rishi


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## ragga (Jan 23, 2005)

im confused??? lol


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## dubaiflo (Jan 3, 2005)

well investment is your main business now isn't it


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## ragga (Jan 23, 2005)

lol yeah


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## Ben_Burj (Aug 28, 2005)

dubaiflo said:


> well investment is your main business now isn't it


Thne he is my best freind


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