Issue link: http://read.dmtmag.com/i/114548
Manufacturing ("Kobelco's Plan of Attack? Getting the Management 'Band' Back Together" continued from page 41) a new dedicated, Houston-based headquarters facility. More than 150 machines specifically built for North America are scheduled to arrive before the company headquarters opens in June. Kobelco will have $2 million dollars in parts inventory by mid-April and by year-end the company plans to have $5 million in parts inventory. Kobelco also plans to employ about 50 people. But their strategy goes far beyond making a better product. With many quality Kobelco excavators on the market, Hargrave knows it's going to take a total package to gain market share – that includes pricing, product support, performance and quality of the machine. "Differentiation will come from the people we have, and the level of support we provide our dealers," Next Steps In an end-of-February communication to the manufacturer's dealers, Ron Hargrave, vice president Marketing and Sales, Kobelco Construction Machinery USA, recently outlined the following facts and priorities: n Company legal name is Kobelco Construction Machinery USA Inc. address is 4690 World Houston Parkway, Houston, Texas 77032. Note this facility is leased while we construct our new office warehouse in Houston. The new facility will be approximately 94,000 square feet in size. n Our company president and CEO is Mr. Morita (Pete) Katsuhiko. n There has been some confusion on the color of the machines coming in. The units sold into the North American market, will be (drum roll please) yellow with the traditional black lettering. The South American marketplace prefers the blue and green that is standard in Japan, so that is what we will provide to them. n We have $2 million worth of Kobelco parts on the way to Houston now. An additional $3 million of parts will be arriving in a few more months. n 150 Kobelco excavators are being finished up and will start arriving into the various ports around the U.S. in the middle of May. We presently have a total of 474 machines scheduled to ship into North America and 80 units assigned to South America. We do have the ability to expand these shipment levels if business requires it. n We will be supplying the complete line of Kobelco excavators to our dealer network – along with the support and assistance that the original Kobelco organization was known for. n We are presently hiring staff for our company and many of the names will be familiar to you if you were a part of the original Kobelco dealer network. n It is our intention to aggressively seek to expand our market share, and we will be looking for dealers with that same objective. n We will provide you with the tools to get the job done: aggressive pricing, retail and wholesale finance programs, advertising both on a national basis and local as well. n Service and parts are always important to a dealer network, and we are assembling a truly outstanding staff to handle these issues for you and your customers. George Lumpkins, Eric Hoffman and other talented individuals will work with you to keep your customers working with the Kobelco products. n Our said Hargrave. To that end, Kobelco is intent on responding to what dealers need, such as the request from Collins. "I told them that having safety stock for their dealers is critical to take advantage of unforecasted opportunity," said Collins. "New inventory available for safety stock will help increase our market share." "The old Kobelco was able to offer a product that had an edge with quality and technology at a very competitive price," said Reynolds. "I think they are going to bring that combination back. If you can bring a better product at a better price, you will get market share." Parts support is not a concern for the dealers we spoke with. With a 10-year parts commitment from CNH and a central parts distribution center for new Kobelco dealers, expectations are high. "We had great parts and service before, but now it will be even better," said Collins. Kobelco has enlisted the aid of 15-year Kobelco parts veteran, Eric Hoffman, to head up the parts operation. Back to Their Roots Kobelco's comeback strategy has its roots in the company's previous success. With a 30-year history in North America, Kobelco isn't exactly the new kid on the block. They know what it's going to take to build a dealership network and improve market share. "When we marketed Kobelco before, we were aggressive both in pursuing new business and in the performance of our machines. We intend to do the same things," said Hargrave. The company plans on more sales and service training for dealers, as well as aggressive marketing that will include trade advertising and a CONEXP-CON/AGG exhibit. "I think you are going to see simpler, easier to understand sales programs and financing programs," Hargrave said. "We have a very high quality, a good performing product, priced where we 42 | www.cedmag.com | Construction Equipment Distribution | March 2013 40_Kobelco_Feature_KP.indd 42 2/27/13 3:34 PM