David Daniels, New Holland Construction brand marketing manager
Mike Fitzgerald, Bobcat product representative for the loader group
Gregg Zupancic, John Deere Construction & Forestry product marketing manager for skid steers and compact track loaders
Allen Rudd, Takeuchi national marketing manager
Bud Martin, Terramite sales manager
RER: Give a little background about the development of the early compact equipment and skid-steer loaders. What precipitated their development? How has the machine changed over the years?
Daniels: Having entered the skid-steer market 35 years ago, New Holland was among the founders in the skid-steer industry. New Holland Construction's major contribution to the skid-steer industry is that it developed the first parallel lift boom linkage system, our “Super Boom.” On a side note, New Holland will manufacture its 220,000th skid steer this year. A detailed history of our skid-steer legacy is available online by visiting www.greatestskidsteer.newholland.com.
Over the years our Super Boom skid-steer loaders have been updated per customer requests for roomier cabs; different hydraulic/final drive systems for better reliability; a tilting cab for ease of major servicing; and a common quick attach plate to use a wider variety of attachments. These are the major changes.
Additional changes include enhancements to engines to address emissions upgrades, some transmission/hydraulic changes and the addition of SAHR brakes to address customer requests. New Holland Construction's introduction of compact track loaders has also been a major change in these related product lines.
The most recent changes to skid steers and compact track loaders at New Holland Construction include pilot controls; the introduction of our new critically sized L175 & C175 models and our new, improved visibility, improved ergonomics, quieter and fully-detailed deluxe cab. These new introductions all have taken place within the last year and a half.
Bottom line, New Holland Construction is always responding to customer requests for improvements by developing new machines featured to make operation safer, easier, more comfortable and more reliable for our users.
Fitzgerald: In 2008 Bobcat will celebrate the 50th anniversary of the Bobcat skid-steer loader. So 50 years ago the Bobcat, as we call it, the four-wheel skid steer was invented. As it was originally invented, the skid steer was a three-wheel unit — two drive wheels and a caster wheel in the back. Two gentleman, who wanted to clean out turkey barns with something other than their hands, created a small machine to be able to get in and out with a mechanical piece of equipment. That's the beginnings of the skid steer, and 50 years later the industry has grown and migrated into a much larger entity than what could have been envisioned at that point in time.
The original machines had air-cooled gas engines and clutch drive systems with multiple chains, compared to today's machines that have very sophisticated hydraulic and hydrostatic systems — hydraulic for functioning the lift and tilt and other attachment areas, and then the hydrostatic drives for the drive system.
Zupancic: Actually, not many people know this but John Deere has been in the skid-steer business since 1970. In 1997, John Deere developed a purpose-built business unit that now designs and sells a 17-tractor lineup that includes more than 100 Worksite Pro attachments.
Rudd: Takeuchi developed the world's first compact excavator in 1970. It was a 2-ton-class machine with a boom-swing mechanism and was capable of 360-degree slewing. Compact excavators below the 6-ton class aroused new demand all over the world. A new market was opened and Takeuchi set out to establish itself as the standard in the field. In 1986, Takeuchi introduced the world's first compact rubber track loader. These two products have transformed the North American construction equipment markets.
Martin: A lot of the earliest compact machines were produced in the 1960's when hand labor was getting harder to find. They were truly created as a means to replace hand labor. Employers needed a way to get some of the manual jobs done more efficiently, reduce worker fatigue and in fact lessen workmen's compensation cases.
RER: Have the improvements in hydraulic and hydrostatic systems increased the flexibility of today's machines?
Fitzgerald: Yes, the original machines were somewhat limited in scope on what they could do and markets were limited on where they were utilized. In the early days, the vast majority of skid-steer loaders were sold in the agricultural business. In the mid to late '70s that started to change to the construction and industrial markets. The '80s saw a transition that included rental applications and landscaping. These areas are now the largest part of our business.
The machines themselves have changed quite significantly because of the technologies that have been developed that enhance the performance of the machine. It's called compact equipment for a reason. That's what we have to deal with in our scope of designing and developing the product to stay in the small compact realm, yet we see people wanting to do more and more with the advent of hydraulics. We offer a multitude of attachments here at Bobcat and there are hundreds of attachments available throughout the compact industry. There are a lot of things that the machines are utilized for today that, as people envision new and different things, just continue to enhance the viability of compact equipment. From a rental industry standpoint, the utilization of compact equipment — the skid-steer machines and compact track loaders in general — with a wide variety of attachments, the machine is not just a dirt moving or pushing piece of equipment, but an operator can also hook on an attachment for landscaping, leveling material, seeding and sodding.
The enhancement of attachment availability and the versatility of the machines are improving more and more all the time. In the early days of skid-steer loaders, they were a secondary machine on a jobsite made for small duties and utility use. Today, we see our machines actually scheduled on jobsites where it is the main piece of equipment. Operators put eight, 10 and 12 hours a day on machines. We continue to see the utilization increase as the business has grown and changed over the years.
RER: To what do you attribute the popularity of the skid-steer loader?
Daniels: The major attribute that accounts for the popularity of skid-steer loaders is their versatility. This has resulted in the major market evolution towards the use of more and more attachments with skid steers, expanding their functional use and capabilities.
RER: How have skid steers and compact equipment developed over the years? (i.e. greater comfort, easier maintenance, more attachments, etc.)
Fitzgerald: Serviceability on the machines is critical and throughout the years we have tried to make equipment easier to service all the time. Our current product offering has engines transversely mounted and that gives operators one-sided engine serviceability where they can perform daily maintenance checks from one place.
Oil change intervals have improved from 50- to 100-hour intervals to now 250-hour intervals, which reduces maintenance costs. In addition, by removing two bolts the cab rolls back to allow full access to the vast majority of components, making service easier.
We're seeing more and more machines reach longer hours of operation, and in today's world it's harder to get good operators, so operator comfort has gotten to be a very critical point in machines. In the early days the ROPS canopy was open, and then just 10 years ago a certain percentage of machines had cabs with heaters. In recent years there has been a significant move toward machines with enclosed cabs and air conditioning to protect the operator from inclement weather, wind and dust.
In our early days we offered one control system, which was hand levers and foot pedals, and now we have three different operating systems in the machines to accommodate the operator's most learned method of operation. The machine can be operated in the traditional style with hand levers for steering and foot pedals for lift and tilt functions, with hand controls with steering located on steering levers along with right and left handles to actuate the lift arm and the bucket, and with joystick controls consisting of an electrical joystick that operates a hydrostatic pump electrically. The stroke of those levers is significantly less than on a manual system, which lowers operator fatigue.
We try and match as best as we can to the operators because everyone has just a little bit different preference on what they like and what they want to see. The operator comfort part of development in the past 10 years has been very significant on making the working environment nicer for them in the cab, giving them options and making the machines quieter.
Zupancic: During the late 1990s, most consumers were looking for a low-cost skid steer to operate like a mechanized wheelbarrow. Today, customers are increasingly moving to skid steers as their primary piece of operational equipment with creature comforts including enclosed cabs, heat and air conditioning, suspension seat, improved interior and exterior lighting, 12-volt systems and push button Quik-Tatch.
The skid-steer attachment industry continues to grow and is still a major portion of business due to the versatility that various attachments offer the customer when coupled with a skid steer.
Rudd: Takeuchi engineers are consistently working on product improvements and future concept products. The Takeuchi operators' compartments are some of the largest in the industry. Six-way adjustable seats are available in some models along with cabs that have sound systems, air conditioning and heater options. More efficient methods of transferring horsepower into usable power, such as a high sprocket double reduction planetary final drive system, are available on track loaders. This provides the most efficient and durable method of speed control and torque amplification, which means superior traction and digging force. For Takeuchi excavators, pressure compensating piston pumps let operators run several functions at the same time without losing speed. They provide the flow and pressure for unmatched breakout force.
Wheel loaders feature pushbutton control of 100-percent front and rear axle differential lock, which means immediate, additional traction for superior digging and lifting power. Joystick controls have evolved for ease of operation, promoting more productivity and less fatigue.
Martin: Early compact equipment was rudimentary at best. If you wanted to dig a hole they dug it, that's all. If you wanted to cut a trench that's just what the trencher did, and so on with the other machines as well. There was little or no attention made for comfort. Most machines were manhandled or you walked behind them. Today you can put together just about every option of the bigger machine on the most compact of machines. It's just a smaller version. They are more “Swiss Army Knife” in nature. You can ride them, drive them, and by adding various attachments they have become a multi-purpose machine.
RER: The market for compact equipment in general has grown greatly over the past decade or so. To what do you attribute the remarkable growth?
Daniels: Compact track loaders have had — and will continue to have — a big impact on the skid-steer category. Compact track loaders are popular in markets with a lot of precipitation where using a CTL can extend the working season beyond when a regular skid steer can be used. Compact track loaders also work well to prevent the tearing up of worksites because of their low float, and are often used in residential areas and other areas where this is desirable. Because of their added stability, new operators are often more comfortable in operating a compact track loader.
Fitzgerald: There are a variety of reasons as to why our market has grown including the proliferation of attachments and the varying job duties that these machines are seen fit to perform, as well as the variety of industries in which they are sold. More and more people are seeing that they are a viable piece of construction equipment, it's not just a utility piece that's on the job for limited uses.
If we look at the world in general, on one side, the big huge construction projects and interstates are for the most part complete in the United States. Now we're seeing a lot of urban renewal where crews are working in tighter areas. We're seeing development with 5-foot lot lines — much tighter areas where homes are being built. We're also seeing construction where developers want to maintain some of the natural vegetation in a development so they need smaller equipment to go in and selectively clear out certain aspects. There are just so many more applications that the machines do that has helped the market grow.
The machine's efficiency has improved over the years. Costs have been contained fairly well.
Zupancic: The construction and landscape industry, and thus the rental industry, has been one of the main economic highlights for compact equipment over the better portion of this century. These segments offer the largest growth potential for the light equipment market segment in 2008 and beyond.
There is some concern that higher interest rates and higher oil prices will drag down consumer spending in 2007 and 2008, however, positive economic expansion is expected to continue in the United States through 2010, fueling the various compact equipment sales. Several powerful factors are still in place, which will continue to fuel skid steer, and compact track loader sales, including historically low long-term interest rates, which have been driving small construction business growth.
Rudd: As the first company to introduce compact excavators to the North American market, Takeuchi started one of the highest growth product segments ever introduced in the compact equipment segment. The compact excavator market has grown to more than 35,000 units per year. After introducing the first compact track loader, that market has grown to more than 30,000 units per year.
Compact equipment has become a main line product for both rental and construction/utility companies. They are versatile, small but still powerful, certainly more affordable and extremely functional in small, tight areas.
Martin: The ability for homeowners, do it yourselfers, and smaller type contractors to use this equipment safely and efficiently has really spurred the growth of the compact market. Now that these machines are easily transported, easy to learn, and have become more readily available from rental stores, they are the everyday tools for the average person.
RER: What types of new technologies, enhancements and features are on the horizon for the next generation of skid-steer models?
Zupancic: In the future we will see skid steers offer lower effort and easy-to-operate control systems that enable productivity and safety features for the customer. For example, Return to Dig or Boom Height settings allow the operator to get various jobs completed more efficiently. Also, there is a safety setting to help slow down or speed up the overall machine working speeds to better match the customer's skill level.
Rudd: An example of future products from Takeuchi include a line of battery-operated excavators currently in the prototype stage. These concept units are being designed to meet the growing demand for cleaner running construction equipment.
Martin: This is a wide-open area. It's generated by need or even in some cases a desire, whether needed or not. That is manufacturers will be looking at the market. They will determine what is needed, what is wanted, what will fit the compacts, and what will help to sell more of the equipment they are now making.
RER: What do you expect for the future of the compact equipment market, particularly with skid steers?
Daniels: The major market trend in skid steers will probably continue to be the use of more and more attachments and to expand their functional use and capabilities. Also, the advent and increasing use of compact track loaders will continue to change the landscape of the skid-steer market.
As far as growth markets for skid-steer loaders, they will probably continue to be the traditional markets of construction, landscaping, roads, bridges and agriculture.
Also, for new model skid steers being introduced to the market today, the trend is moving towards greater horsepower and rated operating capacities.
Regarding other types of compact earthmoving machines, there has been a huge growth in the use of compact or mini-excavators. For small residential construction, as well as many of the other markets we serve, compact or mini-excavators are usually the second-most purchased piece of construction equipment after the skid steer.
Fitzgerald: I think on a worldwide basis, the compact equipment market has a way to go yet. Back in '99 we introduced the compact track loader and that market has taken off very quickly and with some very big numbers in sales. While our skid-steer loaders have plateaued, the compact track loader has taken off and filled in a lot of the voids in the market and enhanced some of the areas that we can expand in to. We continue to enhance the attachment offerings that are available. The rest of the world includes a lot of areas that are still developing and changing and they have the potential to use our equipment for their growth. There is potential there for the market to continue to grow for many years.
Zupancic: There will always be a place for skid steers especially in the rental segment because they are the entry-level product for folks getting into the dirt or building business. They are purpose built for versatility, compactness, maneuverability and transportability. Due to these inherent traits the skid steer will be around a long time.
Rudd: The compact equipment market will continue to grow and evolve. Takeuchi strives to understand the needs of the end users, and lead the industry in new product development.
Martin: There should be good steady market growth in the future. I'm sure there's going to be a lot of new innovation and development to increase the utilization of these machines.
