Tech
LiuGong Gears Up to Take on U.S. Construction Equipment Market
As supply-chain problems tighten construction equipment availability, LiuGong North America in Katy, Texas, says it has a compelling message to customers and potential dealers:
We’re here, we’re growing, and in some cases, we have inventory.
Earlier this year, LiuGong detailed a major revamp of its offerings to U.S. customers, including a transition from the E-series to the F-series excavators, a new line of Dressta dozers scheduled to debut in the second half of 2022 and the introduction of new wheel loaders over the next 24 months. This fall, the company had select models — including its new F-series compact excavators — displayed at both the Utility Expo and the ARA Show.
During the shows, Equipment World sat down with the LiuGong executive team to catch up.
With most of its products manufactured in China, LiuGong is seeing the supply constraints impacting the construction equipment industry. “I’ve not seen anything like this in 29 years of being in the industry,” says Kevin Thieneman, executive chairman and vice president. “We have to choose what we ship from month to month because you can’t get space on ships.”
Still, because China recovered earlier from the pandemic’s impacts and because more Chinese production is now directed overseas as domestic demand lessens, LiuGong North America finds itself in a better position than some of its competitors. It has inventory for sell, albeit much of it spoken for when it comes off a ship.
Take, for instance, LiuGong’s new F-series compact excavators, which LiuGong has limited inventory. “Availability equals retail at this point,” says Chris Saucedo, vice president and general manager, construction equipment, “and so just about everything that’s coming off the boat is already spoken for, and our dealers are working with each other to fill needs and get more business.”
Dealers, dealers, dealersThe green areas in this map indicate locations that LiuGong North America is targeting for dealer acquisition. (As of September, 2021; Alpha & Omega in Texas has since signed on.)LiuGong North America
Job number one for LiuGong North America is to strengthen its dealer network, says incoming president Andrew Ryan. “We have representation in about a third of the most important North American markets. We want to rapidly increase our representation, not by adding just numbers of dealers but by adding quality dealers that believe in our brand story.”
LiuGong is specifically looking for dealers in the Southeast, Pennsylvania and the central Midwest, among others. (See map above.)
“We don’t have any hard and fast rules about working with LiuGong at the expense of working with others,” Ryan says. Multiline dealers, he says, have an existing infrastructure that allows the company to build incremental relationships. “When you’re in a multiline dealer environment and that dealer is deciding to make an inventory investment with us or a competitive brand, that sharpens you.”
LiuGong’s vision here is to become a full-line OEM. Potential U.S. products waiting in the wings in the company’s plants in China include motor graders, compactors and backhoes. (LiuGong already sells Tier 3 versions of several products in Mexico.)
Another thrust for Ryan is to grow LiuGong North America’s aggregates business. “We’re asking our dealers to be prepared for expansion of our line into larger products over the next three to five years, specifically wheel loaders and excavators and, eventually, 100-ton rigid-frame haul trucks,” he says.
“Quarry and aggregates have been a great success for us,” Thieneman says, who also points out that KHL’s Yellow Table now ranks the global company as the 15th largest construction equipment manufacturer in the world, with more than $4 billion in sales revenues in 2020.
Another thrust is rental. The company has about 30 distributors, and about half of them are in the rent-to-sell space with a few in rent-to-rent. “It’s likely we will complement our dealers’ rent-to-sell strategy with certain regional account customers,” Ryan says. “We can be a very good supplier to a midsize regional rental company.” And in areas where there is no current dealer coverage, “there will be big opportunities for us to form relationships with rental companies, and perhaps see them choose to represent us as a dealer over time.”
Ryan is also working on building the North American team. “We want to make sure they feel empowered and entrepreneurial,” he says. “It’s a very different environment in this startup space than it would be with one of our more mature competitors. This is a see-a-problem-solve-a-problem kind of place.”
LiuGong also wants its dealers to know the brand’s clear expectations of product support. “You have to have buyer confidence that you’re going to be there long term after the sale,” Ryan says. “You’ve got the parts stocked, the technicians and the service infrastructure to keep customers running and productive.”
Head-to-head with the big guys
LiuGong’s 835 wheel loaderLiuGong North America
For those who hesitate to buy a Chinese-made machine, Thieneman points out that LiuGong produces global equipment. It uses Cummins engines and ZF transmissions. “When you break it down that way, it then becomes a question of dealer support.”
Moreover, the company will put its compact excavators “head-to-head with the big guys,” Saucedo says. “The product is very strong.” The 1.8-metric-ton 9018F and 2.7-metric-ton 9027F started arriving earlier this year. LiuGong will also introduce two additional models, the 4.5- and 5.5-tonne units, that will round out the F-series line, says Saucedo. The full-size excavator offering is now in transition, with the last E-series machine sold in September. The F-series full-size excavators will appear early next year.
Although LiuGong expected its revamped Dressta dozers to first make their appearance this fall, that schedule has been pushed back to Q2 next year. It now has five machines in a test program here.
Ryan comes to LiuGong after 25 years at Caterpillar where he worked on Cat’s expansion into the rental and compact equipment segments, along with working with dealers and in aftermarket parts. After a two-year stint in financial technology, Ryan returned to construction, signing on with LiuGong in late summer.
“We have that startup energy and the excitement of creation combined with the experience and financial capacity of a global brand,” Ryan says of LiuGong.
Caterpillar is bidding farewell to its 259D3, 279D3 and 289D3 compact track loaders with the introduction of its new, next-generation 255 and 266 models.
The completely redesigned models debuted at media and customer events at Caterpillar’s Edwards, Illinois, Demonstration and Learning Center last week. The 255 and 265 offer improved engine performance, more lift height, a roomier cab and more standard technology than their predecessors.
“We kept the DNA of the D3 series while reimagining the possibilities of loader performance using voice of customer feedback to lead the way,” says Trevor Chase, product application specialist for Caterpillar. “Both next-generation models leverage the many benefits offered by the vertical lift design. The new Cat 255 replaces the 259D3, while the 265 replaces both the 279D3 and 289D3 machines.”
The CTLs are the last of Cat’s building and construction products to get the next-generation treatment and simplified nomenclature. The first number (2) represents the skid steer loader and compact track loader machine family; the middle number (5 or 6) designates the machine size; and the ending number (5) is the compact track loader identifier. Skid steers will be identified by a 0 end number. Additional new models will roll out in the coming months, the company says.
CaterpillarMore power and torque
Cat equipped the 255 with a C2.8T engine and the 265 with a C2.8TA engine, both at 74 horsepower. This gives the new machines a significant boost in torque – 13% for the 255 and 43% for the 256 – over their D3-Series predecessors. The engine and cooling package are mounted lower in the frame for added visibility out the rear window and stability while lifting heavy loads.
Customers attest that the added lift height makes truck loading easier. The 255 offers 10 feet 4 inches of lift height, while the 265 can reach 11 feet high.
“The lift height has made a big difference when loading trucks,” said Derrick Roger, owner of Coast to Coast Lawnscapes, who spent several months testing the 255. “You can get on top of that truck now and empty the bucket; whereas, before you would have to shake the bucket to try to get the material to fall out.”
The 255 delivers 36% more tilt breakout, 26% higher lift breakout force and a 24% increase in rated operating capacity (ROC). The 265 also delivers 19% higher tilt breakout force and 22% higher lift breakout force.
Standard hydraulic pressure has been increased to 3,500 psi, allowing the 255 and 265 to operate all Cat Smart Attachments with the standard auxiliary hydraulics provided.
If demanding attachments require additional hydraulic flow, customers can have their Cat dealer activate the high flow functionality on the machine or remotely via software update. This makes it possible for the CTLs to hit 30 gallons per minute of flow at the standard system pressure.
A High Flow XPS factory option increases auxiliary hydraulic system pressure to 4,061 psi for both models, while also increasing the hydraulic flow to 30 gallons per minute for the 255 and 34 gallons per minute for the 265.
The torsion suspension undercarriage delivers better operator comfort, track wear and material retention, plus the stiffer design results in smoother graded surfaces, Cat says. A new 12.6-inch bar-tread narrow track option is available on the 255.
A more spacious cab
Cat says it has increased the cab width by 2.75 inches without making the machines wider and the footwell-to-ceiling height by 1.8 inches. The larger cab gives operators an additional 1.5 inches of hip room and 1.1 inches more width between the joysticks.
A range of new mechanical and air-ride suspension seat options are available, including a ventilated and heated seat. A new automatic temperature control allows operators to set a specific temperature. Relocated vents help cool or heat the machine quickly.
The standard package includes the same 5-inch LCD monitor as the D3 Series CTLs, which offers Bluetooth connectivity and functionality for the rearview camera feed, creep, job clock, and maintenance reminders.
Customers can upgrade to a new 8-inch advanced touchscreen monitor, like the display found in Cat’s next-generation mini excavators and small loaders. It delivers advanced radio control and supports the 270-degree multicamera option. The advanced monitor pairs with the advanced joysticks for integrated control of all machine functions and adjustments.
“You can adjust the movement – or the aggressiveness or the conservativeness – of how your tracks and lift arms work through your advanced touchscreen display,” Dante Thomas, skid steer and CTL marketing manager, said. “And you can control of all of your display functions from the advanced joysticks. There are buttons with enter and select functions on those joysticks that you’re able to change any functionality that is possible.”
Cat also redesigned the entry, making the 255 and 265 easier to enter and exit. The cab door can be opened even when the lift arms are not fully lowered to the frame stops. It can be removed without tools in less than one minute.
Advanced technologies
Calling the 255 and 265 “one of the most attachment-friendly machines on the market,” Thomas says both the standard and advanced monitors can run Cat Smart Attachments, such as the dozer and grader blades and backhoe.
“It has attachment recognition that when you plug the attachment into the machine, it recognizes which attachment is connected. It adjusts your joystick pattern, so it gives you intuitive and simple control,” says Thomas.
The available Cat Product Link Elite system tracks machine hours, location, asset utilization, provides fault code details and delivers advanced monitoring and machine health, that is remotely accessible via VisionLink. In addition, Product Link Elite provides remote flash and troubleshooting capabilities and quickly enables the remote activation of the SEA High Flow feature.
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Quick Data is a snapshot of new and used wheel loader sales trends from Randall Reilly’s EDA equipment financing data, TopBid auction price service and EquipmentWatch market trend reports.
Demand for wheel loaders has softened with new and used financed wheel loader sales down year-over-year from August 1, 2022 to July 31, 2023 according to Randall Reilly’s EDA equipment financing data.
Financed new wheel loader sales dropped 10%, while used financed wheel loader sales fell by 15% compared to the same period last year.
Cat (22.4%), Deere (21.0%) and Komatsu (12.4%) held their positions year-over-year as the top three sellers of new financed wheel loaders. Top models sold included the Deere 544 P-Tier (401), Deere 624 P-Tier (380) and the Komatsu WA270-8 (364).
[Watch: “A Really Solid Machine” – Test Run of Komatsu’s WA475-10 Wheel Loader]
Cat (28.5%) and Deere (22.9%) also snagged the No. 1 and 2 positions for the highest number of financed used units sold, with Case (14.7%) claiming the third spot. On the date we examined the data, the top-selling models were the Case 321F (340), Cat 926M (164) and the Case 621G (159).
During this period, there were more buyers of new loaders in Florida (955) than in any other state. Buyers of new wheel loaders were also prevalent in Texas (893) and Illinois (665). Those states were also top buyers of used financed machines, with 712 units sold in Texas, 413 in Florida, and 412 in Illinois.
EDA data is compiled from state UCC-1 filings on financed construction equipment. EDA continually updates this data as information comes in from each state.
[Related Content: A Rundown of the Latest Wheel Loaders for 2023]
Used Wheel Loader Market
Used wheel loader prices rose 10.1% for the 12-month period from August 1, 2022 to July 31, 2023, according to Randall Reilly’s EquipmentWatch market trend data.
The average price for a used wheel loader was $137,465 in July 2022 compared to $151,367 in July 2023. The average age of used wheel loaders fell slightly during the period, dropping from 8.8 years to 8.3 years.
EquipmentWatchThe average age and price were calculated on 153,356 resale listings during the period in the EquipmentWatch database.
Over the last 12 months, prices for used wheel loaders have in general increased, with the largest gains in October 2022 (6.5%) and February 2023 (2.9%).
EquipmentWatch defines fair market value (FMV) as the monetary value of an asset that can be expected in a transaction with a single seller and single buyer, neither of whom is under any compulsion or time restriction to complete the transaction. FMV for heavy equipment is most closely associated with the private resale market, as opposed to the public auction market.
Wheel Loader Auction Prices
Caterpillar also dominated the auction charts, accounting for 18 of the top 20 wheel loaders sold in terms of price for the 12-month period of September 1, 2022 to August 31, 2023. Deere and Komatsu were the only other manufacturers to appear on the list.
The top auction price spot went to a 2021 Cat 966M with 2,188 hours. It sold for $400,000 at a Ritchie Bros. auction in Orlando, Fla., on September 21, 2022. The second-highest price paid was $315,000 for a 2019 Cat 980M with 7,836 hours at another Ritchie Bros. sale in Atlanta, on December 1, 2022. Rounding out the top three was a 2018 Deere 944K with 8,941 hours. It sold for $290,00 at a J.M. Wood Auction Co. sale in Montgomery, Ala., on March 21, 2023.
In total, there were 358 wheel loaders sold at auctions tracked by Top Bid during this time, with an average price of $99,747. (This does not include any units sold for less than $5,000.)
EDA, Top Bid and EquipmentWatch are owned by Randall Reilly, parent of Equipment World.
[Related Content: Heavy Equipment Auctions Set for Second Half of 2023]
Volvo Construction Equipment bought Terex’s off-road truck line in 2014, and six years later, it rebranded its articulated haulers under the Rokbak name.
On this episode of The Dirt, we hear from Paul Douglas, Volvo vice president of rigid haulers, who explains the differences between the old Terex line and the Rokbak trucks. He also gives a hint at some of the new things coming from Rokbak, including redesigned cabs and replacing the current trucks with new models. There’s also the possibility of a new size truck to hit the market.
Rokbak, as with other construction equipment brands, is working toward a zero-emissions future. On this episode, he explains where the articulated dump truck market is heading in terms of alternative fuel. He adds that customers will see big changes in emissions and engines in the next five years, with the ultimate goal of reaching zero emissions within 10 years.
So to learn more about Rokbak and what the brand has in store for the future, check out this episode of The Dirt.
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