

One-third of all the construction equipment made in the European Union (EU) comes from the United Kingdom. The Construction Equipment Association (CEA) - formerly called the FMCEC - was established in 1941 to represent UK construction equipment manufacturers and since that time its members have been exporting to the Gulf states.
Today, the 100 leading original equipment manufacturers (OEMs), component and accessory suppliers and specialist service providers belonging to the CEA export 85 per cent of their production and the Gulf states are favoured markets.
Peter Barfield, marketing manager, Benford Limited, a manufacturer of dumpers, road rollers, compaction equipment and concrete mixers, says his company has been exporting to the Gulf states for 60 years.
'It is good, steady business and British companies are known for their reliability,' he says. He enjoys long-term relationships with business leaders, many of whom were educated in the UK. He says the Gulf's business leaders are justly proud of their good reputations.
The UK is home to multinationals such as Komatsu and Caterpillar who have long been established equipment manufacturers in Britain - augmenting the home-grown achievements of JCB. The financial strength and global perspective of these large companies is much appreciated by their Middle East customers.
But it would be wrong to suggest that UK exporters are restricted to a few leading marques: many of the British exporters to the Middle East are the vibrant medium and smaller-sized enterprises producing unique and innovative products.
These small niche suppliers active in the Gulf area have every opportunity to do well: they offer technical expertise in providing the know-how and equipment to solve particular construction problems. Additionally, many exports are the components for construction equipment and these component supplier companies contribute significantly to the $3.5 billion-plus turnover of the UK construction equipment industry.
Jimmy Poll, area sales manager for BSP International Foundations, states: 'The Middle East and Gulf states should be a target area for all manufacturers of British goods. The key to doing business is commitment - a willingness to develop personal contact with the client and maintain it. It is always a great pleasure to visit these countries for the hospitality, warmth and friendship that is on offer and lasts a lifetime.'
Markets in the Gulf states are sophisticated and demanding. Customers are aware and discerning about the quality of the product they require as well as sharp when it comes to agreeing prices. CEA members are required to manufacture products of proven reliability to high quality standards with a full after-sales service but clearly, British manufacturers have to continue to be up with the best in the world to win business in the Middle East.
Therefore, the CEA has launched the Promoting Performance programme to maintain and encourage excellence: excellence in manufacturing, in exporting and in overall management. The CEA has joined with the automotive industry in the provision of Master Class, Supply Chain Improvement, Value Stream Mapping programmes delivered by senior engineers who work with companies on their shopfloors.
The UK government is supportive of the CEA focus on world-class competitiveness for UK manufacturing which contributes 37 per cent-plus to the national wealth - a sector to be nurtured and to be proud of.
The CEA is represented at construction equipment shows in the Gulf region, including Iran ConMin in July 2000, when there is always much interest in the capabilities of UK companies and serious enquiries are received.
There is plenty of construction work in the Gulf states at present as those who use the construction part of the tradearabia.com website will know. There is also a rise in UK investment in the region, especially in Dubai - this underlines the recognition that UK companies have of the attractions of one of the most important gateways to the Gulf region. Saudi Arabia is another Middle East market where UK construction equipment companies wish to develop business and there are plans to spend an additional $6 billion on infrastructure development. Saudi Arabia alone imports more products from the UK than the whole of Latin America.
Historically, the UK has strong trading links with the Gulf and UK products and services are held in high regard. British innovation and enterprise are much appreciated by Middle East customers and the British businessman is seen as the person who offers advice, truth and sound information. The British prove reliable partners and their technology, service, training and consultancy are much appreciated - and UK businesses appreciate their counterparts in the Gulf states who are well-versed in the ways of international business.
British exports to the Middle East are valued at $14 billion annually. The major markets are the UAE, Saudi Arabia and Iran. Now that the UK government has agreed Export Credit Guarantee medium cover for Iran for capital goods and infrastructure projects, we expect that Britain and Iran will have greater opportunities for commercial relationships.
Although the economies of the Gulf states were severely jolted by the 1998 oil price collapse, construction equipment companies are again enjoying and looking forward to the future following the sustained recovery in oil price.
The massive reserves of oil and gas in much of the Gulf region underpin the steady growth expected in 2001 in increased government and private sector activity in infrastructure and construction projects. UK companies are involved as joint venture partners, technology licensors, suppliers of equipment and know-how in the continued development of the region.
There are plans for new roads, airports, hospitals and housing, among other project, in an area which is politically stable. Today, Qatar and the UAE are big potential markets due to large investment programmes in new and redevelopment projects. Middle Eastern expenditure is growing and the area is set to become one of the fastest growing regions in the world.
UK construction equipment companies continue to enjoy the exciting challenges in providing the goods and services that Gulf region customers demand and expect in the new millennium. There is a large demand for the bigger equipment and the future remains bright because of the high oil price and because British companies are prepared to embrace the continual changes and improvements required.
UK construction equipment companies, therefore, look forward with confidence to furthering trade links with business leaders in the Gulf states.