Interview: How is LiuGong positioning itself for success in Europe?

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Catrin Jones interviews Harry Mellor, European product director at LiuGong, on how the company is positioning itself for success

Harry Mellor, European product director at LiuGong (Photo: LiuGong)

In an evolving European construction market, technology, sustainability, and shifting user demands are redefining how businesses operate. To explore these changes, Construction Europe spoke with Harry Mellor, European product director at LiuGong, a Chinese equipment manufacturer making significant strides across Europe.

During our conversation, Mellor shared his insight on industry’s trends, the role of electrification, and how LiuGong is positioning itself for long-term success in an increasingly competitive environment.

Times are changing

With 14 years in the industry, Mellor notes how much of his early career was dominated by engine legislation, which stifled innovation. “For my first ten years, the construction market was very laboured by the changes in engine legislation, and we did not see much development from construction manufacturers.

“Since the roll out of stage V, manufacturers have seen the ability to innovate again within machinery and more technology has come out.”

LiuGong, along with other major Chinese manufacturers, entered the European market in the early 2010s. While the reception was initially lukewarm, Covid-19 served as a turning point.

“Since Covid,” says Mellor, “Chinese suppliers have had the ability to supply and that has elevated our company’s position in the market. It has also made it more competitive, which is a good thing because more competition and new ideas helps to move the market on. I think that’s important.”

A green revolution

Sustainability is high on the agenda in the construction sector, but as Mellor points out, Europe is playing catch-up when it comes to electrification. “Some regions, like the Netherlands and Norway, are leading the way with strong political mandates, but overall, Europe risks falling behind.”

As electrification becomes a feasible and financially attractive option for large-scale equipment, Mellor notes that users are increasingly convinced of the benefits. “At first, people were adopting electric machinery to tick a box, but now, when they’ve actually got the machine on site, they’ve seen how much money they can save.”

Mellor adds, “It’s going to have a huge effect on [companies’] carbon footprint. It’s creeping up slowly; people are looking at it but perhaps don’t have the belief in it yet. Once customers have had demonstrations of the machines, they start believing that electric power is a strong solution.”

Overcoming challenges

Inflation and political instability are two major challenges currently facing the European construction industry. Mellor acknowledges that these factors have impacted purchasing decisions, with a noticeable shift toward smaller, more affordable machinery.

“The 9-tonne excavator market is up 9%, while the 13-15 tonne market is down 40%. There is perhaps a shift in the buying decision, where if you can replace a bigger machine with a smaller machine, do a similar amount of work and not spend as much capital upfront,” he explains.

Another hurdle is the ageing workforce in construction—a challenge more pronounced in some parts of Europe than others.

“In Scandinavia, operator training is part of the education system, but in the UK and other parts of Europe, we haven’t kept up,” Mellor remarks. “There’s a gap between what younger operators expect from machines and what the older generation is used to.”

LiuGong is at the forefront of bridging this gap, Mellor adds, offering machines with advanced technology that appeal to younger operators while maintaining the simplicity older users appreciate.

Adapting to new technologies is another challenge. “The adoption of new technology is something which businesses have to face,” says Mellor.

However, he believes solutions are simpler than many realise. LiuGong’s technology is designed to be user-friendly, allowing operators to fine-tune settings without the need for service engineers.

“We’ve given more functionality to the operators—if they want to change how the boom or bucket operates, they can do it directly from the machine’s display with just a few clicks,” Mellor adds.

Growth plan for Europe

When asked about LiuGong’s growth strategy for Europe, Mellor’s answer is clear: steady and consistent long-term growth. “We like to say that volume is vanity, profit is sanity,” he says. LiuGong is focusing on building regional hubs to get closer to its users and the company has already expanded its presence with new hubs in France, Italy, Poland, and soon in Germany, Turkey, and Scandinavia.

LiuGong’s investment in Europe also includes a product management R&D centre in the UK, which allows the company to develop products specifically for the local market.

Emphasising the importance of listening to local operators and companies, Mellor explains that, “The eastern market is quite different in the way they operate in the specification of machines. The first thing we’ve done realistically is to simply listen to customers and ask them what it is they want.

Looking to the future, Mellor sees a shift in the types of equipment being used as Europe continues to urbanise and focus on smart cities. “We’ve seen a rise in the use of zero-tail swing machines and wheeled excavators. I think we have seen, in the past five to 10 years, a growth of around 30%,” he says.

Battery-electric machines are also becoming more popular for their ability to reduce emissions in populated areas but also in high production applications to increase productivity and efficiency.

In regions such as Germany and Norway, where regulations and public pressure are pushing the adoption of greener technologies, LiuGong’s electric equipment is gaining traction.

“Particularly in Scandinavia,” says Mellor, “our battery electric machines have really taken off, and two years ago we didn’t really even have a footprint there. It is about doing the simple things right.”

As LiuGong continues its European expansion, the company says that it remains focused on delivering innovative, sustainable solutions that meet the needs of the industry.

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