SAVANNAH, Ga. - Cotton was Savannah's primary export for more than a century, but times are changing, and JCB wants to be a major part of the change.
The British-based construction equipment manufacturer relocated here from Baltimore in January, building a 500,000-square-foot, $62 million factory, and plans to make significant inroads into the North American equipment industry, emulating its success in Europe.
"Before we were seen as a player, but we now want to be a major player," JCB president Mike Chapman says. "We are committed to America."
JCB has sold its backhoe loaders in the United States for more than 20 years, but with development of the new plant, the company will aggressively market its seven other product lines, including telescopic handlers, mini excavators and skid-steer loaders.
For the first time, JCB machines will be manufactured in America, and at full capacity the plant can produce up to 10,000 units per year, including 23 backhoes a day, according to Doug Friesen, JCB's vice president.
Chapman says the company has developed a strategy to increase its U.S. market share from the current 9 percent to 14 percent within three to five years.
"We want to become what JCB is in Europe," Chapman says, noting the company's backhoes occupy a 64.3 percent market share in the United Kingdom and 40.2 percent in Europe.
JCB initially is pinning its hopes on the new 214Se four-wheel-steer backhoe in the 14-foot class. It was unveiled here in late August.
"These are ideal for the rental market and contractors, where versatility is the name of the game," says Adrian Hall, JCB's backhoe loader product manager for North America. "Contractors want a machine that can do more than one thing."
Rental centers of all sizes will play a significant role in strengthening the company's reputation in America as JCB strives to become the industry benchmark in a field of heavyweights including John Deere and Caterpillar.
"We haven't overlooked the mom-and-pop rental centers," says Gary Walter, vice president of national accounts, adding that JCB has developed a special pricing plan for those operations. "They're a very important segment of the industry, and some people think they're going to go away, but they'll always be there."
