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A Closer Look and in 2011 launched their first are priced 20-25 percent lower than excavators. All of the products are the predominant brands. "It's a great designed specifically for the North value," said Lyle. American market. He believes Sany is doing About the time the U.S. constructhings right. tion equipment market was unravel "Sany went out there and backed ing in 2008, Sany was busy building a up what they are doing with a threestate-of-the-art 400,000 square foot year warranty," he said. "That shows manufacturing and assembly facility confidence in your product. in Peachtree City, Ga. Frank shows On the crane side of the business, prospective dealers the facility to Frank believes market-leading design demonstrate Sany's commitment to is Sany's competitive advantage. the U.S. market. Mike Lyle, president of Landmark The Profit Opportunity Equipment, a dealer with four locafor Dealers tions in the Dallas/Fort Worth area, Current Sany dealers vary in size and was impressed enough with his visit type. Some very well established and the products to sign on with dealers might represent Sany prodSany in January. So far he's been ucts in territories where they cannot happy with the positive feedback he's represent other brands. Others are received from customers renting the newer dealers that Sany is commitSany excavators. ted to help grow. "We have a good "Customers are pleased with the product with good support," said quality and performance of Sany Frank. "We don't want a balance excavators," said Lyle. "They love the sheet to hold up what is otherwise similarity of the components to other a great operating team at a dealer. machines. It gives a comfort level to If the dealer isn't making a healthy the customer. profit (15 percent on machines and "People today are not as loyal 35 percent on parts) ultimately we to one brand," he added. "They're will never grow." exploring." Until it has a significant machine The company's slogan "Quality population in the field to support the changes the world," was chosen to dealer, Sany knows it must offer a demonstrate the company's commithigher margin on new machine sales. ment to changing the perceptions "We built our financial structure about Chinese products. "Once around the reality of where we are," buyers experience the machines, said Frank. the perception of low quality fairly Sany is more than half way to its quickly disappears," said Frank. "The distribution goal of 40 to 45 dealers things that dealers are concerned in North America. about and that we focus on most is According to Frank, acquisitions to how to set up a global supply chain – achieve a technological or distribunot just finished machines in a quick tion advantage are a regular topic of time frame but also the parts needed discussion at Sany. The acquisition of to support the machine. Parts on Putzmeister in January 2012 showed the shelf, machines available and the company wasn't afraid of a big competitively priced – that's what deal. "Sany is an extremely profitable makes money for them." and well-funded company," said Frank understands that as a relative Frank. And while the highly publinewcomer to the market Sany needs cized economic downturn in China an aggressive price. He believes it's has caused Sany to make adjustthe total value of Sany excavators ments, Frank says GDP growth in that will ultimately win customers China is still at 8 percent. over. According to Lyle, excavators Making His Mark Frank has made some significant decisions since taking the helm last May. First and foremost is the decision to bring in more American talent. Rich Jilek has been hired as director of Parts; Andy Clevenger has taken on the role of vice president, Excavator Product Development - North America & Europe; and John Lanning is now deputy general manager for the parent company Sany Heavy Industry Co. Ltd. John is also director of engineering and development for Sany crawler cranes globally. Frank has also put more emphasis on parts. "If we don't get parts right, we won't have success," he said, citing big differences in the way the parts market operates in China versus the U.S. Aggressive marketing is already in the works. The company plans a huge presence at CONEXPO-CON/ AGG in 2014 and is sponsoring Tommy Baldwin Racing and the No. 7 Chevrolet SS in the 2013 NASCAR Sprint Cup Series, which it is using to build stronger relationships with customers and dealers. Realism about where they are and what they have to accomplish hasn't dampened Frank's optimism about Sany. "When Komatsu first came, there were dealers that rolled the dice with that," he said. "Sany is all about potential and I'm betting on them to get it right. I think an investment in a Sany relationship today would be one that, five years from now, most dealers would be pretty happy with." n Interested? Dealers interested in learning more about an opportunity with Sany should contact Eric Teague (eteague@sanyamerica.com) for earthmoving equipment (678) 251-2931 or Kirk Erlinger (kerlinger@ sanyamerica.com) for cranes and port equipment (678) 251-2922. June 2013 | Construction Equipment Distribution | www.cedmag.com | 43 42_A Closer Look_KP.indd 43 5/31/13 1:03 PM