A British-based construction machinery giant, whose equipment has helped build Bahrain, is predicting a bright future for the country.

JC Bamford Excavators, universally known as JCB, is a world-leading manufacturer of heavy machinery used for construction, demolition and agriculture, said a report in the Gulf Daily News (GDN), our sister publication.

Its products are so popular that they can be found on nearly every continent on earth - and in the UK, where the company was founded 69 years ago, its brand name is so pervasive that 'JCB' has become the generic term for any digger or similar piece of earthmoving equipment.

Almost one-third of all construction machinery sold in Bahrain last year was JCB-branded, according to the company's own figures, giving it a larger market share here than in any other GCC country.

"The Middle East market is a big one for us to focus on," JCB chief executive Graeme Macdonald told the GDN.

"The political climate at the moment is a challenge - but we have high hopes for this market, as we know that the future is bright."

Speaking at the launch of a new series of heavy machinery at the company's world headquarters in Rocester, England, Mr Macdonald said that he was confident there was still "vast potential" for growth in the region.

"Despite the uncertainty, JCB takes the long view about business and we continue to invest in future," he said.

"We have got some of the best dealers in the world in the GCC - including Gulf Equipment and Technology in Bahrain - and we will soon be initiating a new investment in Abu Dhabi, which reflects our ongoing interest in the region."

Yet in spite of its estimated 32 per cent market share in Bahrain, the company's actual sales volumes here are lower than in any other GCC country except Oman, according to official figures.

"The single biggest market for us in the GCC is Saudi Arabia, as it remains the largest in terms of construction," said JCB worldwide marketing director Matt McClurg.

"While the boom in Dubai seems to have slowed down, when you look at the demographics, construction in the region has to keep pace with population growth.

"Hence, there is an opportunity for new techniques and new machines to be introduced as companies are always looking for more efficient ways of doing things."

McClurg described Bahrain as "probably one of the smallest economies" in the region, adding that, because it was an island, "the area to work on is restricted."

This might explain why one of JCB's most popular products in the country is its "skid-steer loader" - a highly compact machine whose various attachments allow it to be used as a digger, drill or miniature bulldozer, among other things.

Out of the 126 skid-steer loaders sold in Bahrain in the eight months to August this year, 40 were JCB-branded - compared to 83 of the 292 sold last year, according to a company sales specialist.

"In Bahrain, backhoes - also known as diggers - are the highest selling," he said.

"Our share of the highly competitive market for these machines, which range in price from BD29,000 ($76,446) to BD40,000, was down to 50 per cent against 65 per cent last year.

"Our telescopic handlers, meanwhile - which operate in a similar manner to a forklift truck with a boom attachment - enjoyed 75 per cent market share and our mini excavators had 50 per cent market share in Bahrain."

Bassim Al Alawi, the managing director of JCB's Bahraini partner and local distributor Gulf Equipment and Technology, told the GDN that a boost in sales in skid-steer loaders could help drive the company towards its target of selling 1,000 machines per year.

"The skid-steer machines were first introduced to Bahrain around 12 years ago," he said.

"The market took time to establish itself and building confidence among investors took time, as we had a tough fight against other established competitors.

"But as the quality increased and the price became more competitive, the market has flourished."

Al Alawi said his main aim was to maintain current market share, as the political climate in Bahrain over the past three years had proved a challenge.

"Three years ago, we were selling 500 units, but this has shrunk to less than half during the last year," he said.

"Equipment has been stolen and people have been unsure about investing as our machines cost from BD15,000 to BD100,000, which is a big investment.

"Contractors generally do not buy one machine - they take five or six, and we have some investing to the tune of BD400,000."

Despite the insecurity, sales in recent months have been picking up - with the number of machines sold since Ramadan equalling the total amount of machines sold last year, according to Al Alawi.

"Bringing back investors' confidence takes time," he said.

"There is progress and once the political situation calms down and with the elections happening soon, it might get better." - TradeArabia News Service