What are the global trends you have noticed in the SEM equipment market over the last couple of years?
When looking at global trends in SEM equipment, I notice that manufacturers increasingly focus on technology. They are prioritising automation, AI and connectivity. Companies want to know exactly where their machines are at all times. It’s also hard to find technically skilled people in the current labour market, so manufacturers are adding technology to make these machines easier to operate.
Most of this technology originates from the heavy machinery sector. Just a simple example: many skid steer loaders come with a large display nowadays for grading. That’s the process of levelling and shaping land to establish precise slopes for construction projects. That’s a big technological leap compared to a few years ago; these machines aren’t the “simple” machines they used to be.
The second trend is the rise of Chinese manufacturers in Europe and the Americas. Chinese brands were already well-established in the forklift sector. In the construction market, however, all forecast models predicted a decline in machine sales in 2020. But as we know, that year was marked by the pandemic, which triggered a significant uplift in machine sales and led to record growth. Following this peak, the Chinese domestic market collapsed. This resulted in significant overcapacity and high stock levels, forcing Chinese manufacturers to move their focus toward the export market. As a result, we’ve seen these brands becoming much more dominant in the earth-moving sector.
Finally, a new type of machine, the mini track loader (also known as a stand-on loader), is becoming more popular. As a part of my role, I keep a close eye on these trends. If a certain brand or machine type gains ground, we must respond. The demand for spare parts for these new machines might not be high today, but it will certainly rise in the future. We need to ensure we have the right stock ready when that happens.