In 2026, the executives of construction machinery companies are facing an industry landscape characterized by persistent economic pressures and localized market growth points. The following will present to you the strategic layout and judgment of Kyle Fogelston, Vice President of Hitachi Construction Machinery Americas, regarding the market in 2026. (Published by Equipment World)
We expect that the core driving force for demand growth will come from areas where large-scale infrastructure and energy "mega-projects" are concentrated. These projects will continue to generate stable demand for large-scale construction machinery equipment.
In some parts of the United States, with population growth and the acceleration of commercial development, market activity remains at a high level. Additionally, leveraging our continuously expanding dealer network in the US market, the market coverage and service capabilities have been continuously improving, creating new growth points in regions with lower penetration rates in the past.
Hitachi Construction Machinery Americas Company has always been committed to collecting customer feedback. We deeply understand that in the process of industry continuous development and transformation, meeting customer needs is the core goal of enterprise development, and this point also occupies a dominant position in our product priority planning.
The current industry has higher requirements for the multi-functionality, production efficiency, and uptime of equipment. We are responding to these demands by optimizing the product portfolio. The upgraded and new products to be launched in the coming years will deeply integrate the core insights obtained from the customer base.
Technological innovation is the core brand DNA of Hitachi Construction Machinery, and it is also the key support for our transition to the LANDCROS brand. The "O" represents "open collaboration", meaning we are willing to work with partners to ensure that our products have the core technical capabilities required for modern construction sites.
Under the framework of the "Hitachi Construction Machinery Innovation Challenge", we have already reached cooperation with several start-up companies and successfully developed technical solutions such as remote control and intelligent equipment mapping. These technologies will effectively enhance the efficiency and safety of construction sites, while reducing equipment downtime. As technology evolves and upgrades, they will occupy an increasingly core position in the products and functions we will launch in the future.
How will tariff policies, infrastructure construction funding support, and macro-political factors affect your company's strategic planning in 2026?
Our core strategy focuses on controllable areas, including the optimization and upgrading of products and services, as well as precise responses to customer needs. In the face of external environmental changes, we will maintain strategic flexibility to ensure that customers and dealers always have an advantage in the market competition.
Do you think the constraints in supply chain, such as components, steel, and electronic components, will show a trend of easing, intensifying, or remaining the same in 2026?
We expect that the supply chain will not face major shocks in 2026.
The products we supply in the North American market rely mostly on the production and manufacturing system in Japan, which has a stable and highly skilled workforce. Therefore, we expect that the supply of production and manufacturing personnel will not be affected in the coming year.
How will your company ensure the quality of equipment supply, after-sales service, and customer support through the dealer network?
The dealer network is the core carrier of our commitment to customers. Therefore, we attach great importance to clear and efficient communication with dealers to ensure that they can receive first-class support, thereby providing customers with high-quality services. We maintain regular open dialogues with dealers, and carry out close collaboration in areas such as inventory planning, training programs, and service upgrades to ensure that they have the necessary tools and information to meet customer needs.
We also provide technology solutions such as LANDCROS Connect to dealers to help them achieve real-time equipment monitoring, predict maintenance needs, and respond quickly, ensuring that equipment is always in optimal operation. Through enhanced information transparency and collaborative cooperation, we help dealers precisely match customer expectations and provide seamless service experiences across the market.
Kyle Fogelston: Our vision is to build a prosperous and sustainable Earth and social ecosystem, which means we are committed to promoting the construction of a safe and sustainable society. Meeting emission regulations requirements and customers' individualized sustainable development goals have always been the core considerations in our product research and development, and we will continue to optimize equipment and technical solutions to meet these needs.
As the industry develops and customer expectations continue to upgrade, we will continue to innovate, ensuring that our products have a reduced environmental impact while maintaining the trusted product performance and quality that customers rely on.
Competition is the core driving force behind the development of the North American construction machinery market. We recognize that the competitive pressure comes from multiple sources, including established OEMs as well as emerging market participants. Each competitor has launched highly competitive products in the market, which also motivates us to continuously innovate and uphold quality, ensuring that the equipment and services can meet the high standards of customers.
Looking beyond the annual perspective, what are your outlooks for the global construction machinery market in the next 3-5 years?
Hitachi Construction Machinery Americas' market responsibility scope focuses on the North American region. Therefore, it is currently not appropriate for us to comment on the global market.