44 JUNE 2008 GHI As mentioned, the company’s speciality is the hi-loader but it also manufactures catering trucks and PRM lifts. To get an idea of their relative worth, in 2007 it sold 360 loaders, a figure that has grown year-on-year since 2001. For this coming year Trepel is forecasting a figure of 400. This year should also see up to 400 tractors sold (more of which anon). Standing still in this industry benefits no-one and so working with partner MAFI, Trepel has further diverged and now undertakes electric and hybrid baggage tractor manufacture. Designed in 2005, the first units came on line the following year. Lead/ acid batteries provide the motive power and in the hybrid application the tractor essentially runs on electric with the engine there for charging purposes. Caring for the environment has partly prompted this application but Klaus points out the realities of lower maintenance costs and a better life cycle cost. “These days, software allows the customer to track the history of ownership when it comes to GSE,” he affirms. “They know much more about their fleets and the cost of running GSE than ever before. All this has come about since 2001. Customers are willing to pay a bit extra if it results in longevity and improved running costs.” “With the hybrid tractors we’ve found that our customers are still a little wary of the technology,” adds Philippe. “Normally, it’s the question of reliability that holds people back: after all, you can’t afford to have something break down on the ramp. Really, reliability is more important than innovation.” As mentioned, the manufacturer continues to look to the future. It has not ruled out the application of hybrid and electric power to larger GSE; it is also changing its hi-lift product range to reflect demand. Basically, it has been offering too many different loaders so the range will be rationalised to 3.5, 7, 14 and 35 tonne applications. Its biggest lifter can now actually support (but not lift up) 70 tonnes, which will be useful if freighters continue to grow in size. Testimony to the product can be found in Trepel’s market share: with loaders, it is around 48%, and 70% of its turnover is down to this equipment. It currently enjoys good prospects in the US but Europe and the Middle East are its biggest markets; Germany, in isolation, accounts for just 10% of its sales. Asia and Oceania are not as strong, though. “But we did increase sales volumes there over the last 12 months,” says Klaus. He admits that the Chinese competition is a force to be reckoned with but nonetheless, China does buy European GSE. “Handling companies are still cautious over newer manufacturers – there’s more interest in established companies. I personally believe that within ten years China will have some good loaders. But to manufacture good loaders is not enough to be a success. Lifters, like de-icers and pushbacks, are tricky to build because they contain thousands of parts so there is plenty to go wrong. The technology is well-known but all the parts need to come together and then be durable for ten years or more in a variety of climates. That’s the challenge. It’s true that manufacturing costs in China are still lowish but they are moving up now.” Finally, what did the pair see as the principal challenges ahead in the GSE market? Klaus considers this for a moment. “Really, we never know what lies ahead, say in six months’ time. Recently, we had a big surge in orders which were quite unexpected. We’d like to increase capacity, and grow that market share, of course. It’s fair to say that we go from one predicted segment to the next.” Philippe agrees. “It’s a small market and everyone is affected by any sort of change. It’s extremely difficult to forecast volumes.” Klaus mentions also the fact that oil continues to increase in price. “If more airlines fail then the market could be hit a bit like in 2001. The exchange rates have to be monitored, too. There are manufacturers living on orders from 2007 but unless they have signed fresh contracts this year, then they will experience problems. Ultimately, no-one can really predict what will happen in this sector.” Everything from assembly to painting undertaken. Trepel today counts on a 48% market share in terms of loaders.