How FMI’s Insights Pushed an Emerging Earth Moving Equipment Manufacturer to Scale Up in the Market
A new entrant in the earth moving equipment market needed detailed insights on how to expand its global customer base, while top-tiered companies have consolidated their strong positions in the market. The company was struggling to overcome different challenges, including the dominance of leading market players and cost reduction. The client was also pressed to find state-of-the-art technologies to diversify its product range and improve the fuel efficiency of its products such as excavators. With various stringent environmental regulations being implemented by governing bodies, the client needed to find ways to reduce the fuel consumption of conventional earth moving equipment. The client approached FMI to understand the recent trends and developments in the earth moving equipment market, to plan its upcoming strategies and establish a new customer base in the market. The company also required actionable insights on the changing needs of end users, and ways to harness its existing manufacturing capabilities and project timelines for retaining profitability.
FMI finds that, leading manufacturers of earth moving equipment and heavy construction machinery account for a significant share in the global market for earth moving equipment. Leading vendors are investing heavily in R&D and technology-based solutions to diversify their product portfolio. Also, leading players in the earth moving equipment market are focusing on investing more in electric earth moving equipment, such as electric excavators, to meet the stringent regulatory requirements, as well as to sync with the changing market trends. FMI also found that, increasing growth of the construction industry in developing countries reflects numerous sales opportunities for emerging players in the earth moving equipment market. The construction industry is likely to create significant demand for heavy construction machinery and earth moving equipment, which will create lucrative growth opportunities for new entrants in the market.
FMI proposed the client to increase focus on the technological aspects of manufacturing earth moving equipment, to overcome the challenges associated with cost reduction and fuel efficiency. Investing in the latest technologies to manufacture powerful engines and introducing innovative control features that can reduce production costs and maintenance could help the client advance in the market. Another factor that could help the client expand its customer base was to increase focus on the specific end-user requirements associated with heavy construction machinery. Increasing demand for excavators in the construction industry could create new sales opportunities for the client to scale up in the market.
The client increased its efforts towards the electrification of its products, and launched an electric prototype of an earth moving equipment, which could offer more efficiency over its conventional variants. This also helped the client in attaining much higher fuel efficiency, in turn, meeting the stringent emission regulations implemented by regulatory bodies. FMI’s detailed survey on growth and developments in the construction industry in developing countries played an important role in devising a new plan for the client to capitalize on more sales opportunities. A thorough research by FMI on the winning strategies by leading competitors also helped the client in adopting new strategies to create its strong position in the ever-evolving earth moving equipment market.