Digging for bigger success

On the back of a global construction boom, one of the world's top four manufacturers of construction equipment has reported impressive growth for the past four years, thanks to an unflagging commitment to provide products specifically suited to its clients' needs.

"We manufacture products that are built for a purpose, products that will suit your needs, and customer care that is unparalleled in the industry. The same has been true since our company's founding and it is the foundation of our continued success," says JCB Sales Managing Director and Chief Operation Officer (COO) Matthew Taylor.

JCB grew 85 percent from 2003 to 2006. And as of April this year, business rose 30 percent.

Today, makers of construction equipment have been forced to look elsewhere as their traditional markets, such as the United States, experience a slowdown in business.

JCB has identified certain emerging markets in Eastern Europe and Asia, including India and China, as the future of its international business.

It recently opened a new manufacturing plant in the Chinese mainland and invested $20 million in its operations there.

Currently, it is completing the construction of an on-site dealership at the manufacturing facility and will build training and workshop centers.

Although JCB's Chinese operation is still in its infancy, it has already started to show promising growth prospects. It is strengthening its network in the country and now has 13 dealerships in place.

Because China is such an important market for JCB's future, the company has taken a cautious and calculated approach. At the moment, it offers a limited product line consisting of just two products.

Aside from backhoe loaders, a new mini five-ton excavator has been designed specifically for the Chinese market and is expected to be a great success. Both models are 100 percent locally made, something that JCB and its clients see as very important.

Taylor is not preoccupied with the rapid influx of companies in China or with becoming the No 1 player in the country. Gradual and sure growth, according to the company chief, is more important if one wants a long-term success.

Focusing on increasing brand recognition as well as building relationships with the local partners and clients is the current game plan, and JCB seems to be confident in its approach.

Recently, JCB hired a new sales director in China, a local who understands the nuances of a foreign market and will help the company quickly grasp local business practices.

JCB has taken critical steps in its quest for long-term success in the region and Taylor has not lost sight of his objective.

"Our investment in China shows our long-term commitment to the marketplace. It is the No 2 market in the world and it will continue to grow at an incredible rate. It will always be one of the most important markets in construction equipment. You cannot be a global player and ignore it," he comments.

www.jcb.co.uk

(China Daily 08/28/2007 page19)