It turns out that when it comes to purchasing construction equipment, the competition isn’t as expansive as some people thought. In reality, three companies, Komatsu, Hitachi, and Caterpillar account for more than 50% of the annual heavy construction equipment sold globally. Of these three, Caterpillar enjoys the highest sales figures.
Taking a look at these three large construction equipment manufactures not only provides manufactures of similar construction equipment to identify ways that they can improve their own sales figures, but also for other manufactures such as creators of semis, logging equipment, and farm equipment. After all, the figures show that these three companies know what it takes to not only land a sale, but to also retain customers.
For example, one of the reasons Caterpillar has enjoyed so much long term and global success stems from the company’s ability to create high quality equipment, but also identify mergers that allows them to create an expansive portfolio and branch into other industrial demographics.
The “big three” have also displayed a remarkable ability for identifying the parts of the world where demand for large pieces of construction equipment will be in the highest demand. This global knowledge has led them to develop a relationship with companies in places such as Brazil, South Africa, India, South Korea, China, and more. By target areas where construction has just begun, the company ensures that there’s always a steady demand for brand new pieces of equipment, something that isn’t always possible in the United States.
Another key aspect for the success of the “big three” is that they never assume that the equipment they make is perfect. They know that there’s always room for improvement and they’re not afraid to look at changes in design and technology and then use the newly gained knowledge to create an even better, more efficient piece of construction equipment that quickly sells out. Not only does this create a steady demand for equipment, but also encourages customer loyalty and keeps customers engaged with the company.
How can you use this knowledge to improve your own equipment sales?