The compact construction equipment market is an interesting one for original equipment manufacturers right now. Bust South Africa becoming an over traded compact excavator market? Munesu Shoko gets the story.
U50 and U50 at MegaWeek 2014
Kubota mini-Excavators Arrives:
Amid a steady rise of the compact market and the growing competition in this range, Kubota, the global leader in the compact excavator market, has launched its range through its local supplier Smith Power Equipment in South Africa. Tom Bloom,
General manager of Power Products, Forklift and Construction division at Smith Power Equipment, says though the compact excavator market is seemingly an over traded segment, the company has us own strategy to attack the market. “Even in an over traded market there is always an opportunity. The fact that the market is over traded presents a niche opportunity for a company with fresh
ideas to come in,” says Bloom.
He argues that Smith Power Equipment’s competitive edge is that it is equipped with a product that has maintained a market leadership position globally for the past 12 consecutive years. “Bear in mind that Kubota has 30% market share in Japan, 25% in Europe and 25% worldwide with an annual demand of 120 000 units,” says Bloom. While Bloom is reluctant to discuss the “unexplored opportunities” of the compact excavators in the construction sector, he tells Plant Equipment & Hire that “certainly in the construction, plant hire and agriculture sector the mini excavator is not used to its full potential”.
Smith Power Equipment has launched the Kubota U30-5 and U50-5 compact excavators with a view to increase the product range, as well as entering into new sectors with the variety of construction equipment Kubota has to offer.
With its presence of about 100 sub-dealers countrywide, and dealers in Namibia, Botswana and Zimbabwe, Smith Power Equipment wants to build from its success in the agriculture sector, where it has enjoyed success with Kubota’s tractor range, to expand presence in the construction and plant hire sectors with the compact excavator range. “Our intention is to be the market leader. We understand that to achieve this takes time and energy, and passion for the products and the industry.”
Bloom says the fact that most of the competition in this range of equipment uses Kubota engines is another competitive edge for Smith Power Equipment. “We believe this is an advantage. Many users of this equipment have come to know the quality and reliability of the Kubota products through their engines. This will also allow us to be competitive on spare parts pricing and response time as we are dealing with only one supplier,” he explains.
This article featured in the Plant Equipment and Hire – Nov 2014
For more info on Kubota please call Smith Power Equipment on 011 284 2000