Articulated haulers become accepted as one of the family of hauling machines.

Compared to some of the more tried-and-true types of haulers - rigid haulers, scrapers and on/off-highway dump trucks - articulated haulers represent a relatively new addition to the mobile equipment family. Yet despite its short history, the articulated hauler continues to gain in popularity,

And for good reason: the articulated hauler has been successful at the types of jobs it was designed to perform - moving materials over rough haul roads or, in many cases, no road at all. Artics are also highly valued for their speed and quick cycle times, machine attributes that an equal-sized rigid hauler typically does not share. Articulated haulers first gained their popularity in mines and quarries where they were found to be a suitable replacement for small rigid haulers. In more recent years, the articulated hauler has become popular with construction contractors and landfill companies.

As testimony to their acceptance in the marketplace, sales of articulated haulers in North America have soared over the past five years, more than doubling to around 2000-plus units in 1997. Our research suggests that 10 percent of these sales are in Canada. While a strong domestic economy has certainly helped, it does not fully explain the increase. Along with their particular advantages over rigid haulers, scrapers and dump trucks, construction companies and select independent rental houses have accepted the articulated hauler as a necessary piece of machinery.

Demand for artic rentals has been at particularly high levels over the last half decade. Dealers rent approximately 80 to 90 percent of all articulated haulers brought to the market today and most of these machines are in a rent-to-sell situation for an average of two years.

For over a decade, the 25-ton articulated hauler has been the most popular sized vehicle. Yet as the acceptance and working range of this type of track has grown, there has been an increasing demand for haulers of different sizes to suit multiple needs. As technology for articulated haulers improved, larger trucks have been introduced with payload capacities of 35 and 40 tons.

A recent breakdown of articulated hauler sales by payload capacity in metric tons reveals that trucks rated 25 tons or less account for almost 40 percent of the market. Haulers between 26 and 30 tons currently represent nearly 30 percent of annual sales. Demand for articulated haulers above 30 tons are almost five percent higher than two years ago and approximately 10 percent higher than eight years ago.

We believe, however, that this trend towards larger haulers has reached a temporary plateau. Atlas Copco Wagner was the first and only manufacturer to offer a 50-ton payload truck in North America, but sales levels for this machine proved modest, causing the company to discontinue the model at the end of 1997.

In contrast to the "bigger is better" theory, a few smaller models are making their way into the North American market. As recently as 1996, there were no machines offered in the marketplace with a payload of less than 25 tons. By the end of 1998, however, there will be three models available. Volvo already offers an articulated hauler with a 20-ton payload, while DDT markets a 16-ton model. According to Bell Equipment, it too will offer a new 20-ton model later this year.

A total of seven competitors currently market their trucks in North America, including Bell Equipment, Caterpillar, DDT, Komatsu, Moxy Trucks, Terex and Volvo. Thwaites, which is based in the U.K., will also probably join the ranks later in 1998. Through 1997, Volvo and Atlas Copco Wagner were the only domestic producers of articulated haulers, but Wagner ceased production of its one model this past January, leaving Volvo as the sole North American manufacturer. This situation will likely change in late 1999/early 2000 when Caterpillar's recently announced new facility in Texas begins to manufacture articulated haulers.

Volvo continues to hold a healthy lead in the articulated hauler market, accounting for over 40 percent of annual sales in North America from 1993 to 1997. Volvo's closest competitor is Caterpillar, hovering around 30 percent.

Among the rest of the field, no one player holds more than 10 percent. Stronger secondary OEMs include Terex, Bell and Moxy. DDT first entered the market in 1997. As mentioned earlier, Atlas Copco Wagner announced that it was withdrawing from the artic market in January, while Payhauler, now owned by Terex, is believed to have dropped out in the mid-'90s.

While demand for this "young hauler" has grown substantially over the past five years, it appears there is still more room to grow in 1998. The economy may hold artic sales back in 1999, but expect to see more larger and smaller units on the block by 2002.

Charles R. Yengst