Compact Equipment Covery Story

Asking the Experts
CE Tracks Skid Steer Trends, Picking the Brains of Five Top
Equipment anufacturers

By Keith Gribbins

It’s a brand new year and the construction marketplace is primed for some big movers and shakers. What will the new work season bring? For skid steers, it’s looking like steady sales and a little growth. Gas prices may be high, the residential construction industry might burst its bubble and consumer spending is down, but economic growth is continuing to push machine sales.

“Economic expansion is expected to continue in the United States through 2006 fueling the various skid steer and compact track loader market segments,” explains Gregg Zupancic, product-marketing manager for John Deere. “Several powerful factors are still in place which will continue to push skid steer and compact track loader sales, including historically low long-term interest rates which have been fueling housing starts and small business growth.”

Last year’s skid steer sales were most likely in the 65,000 to 67,000 realm. Next year, manufacturers are hoping sales hit at least 70,000; the market peaked in 2000 with approximately 70,756 units sold. Compact track loaders (skid steers with a set of tracks instead of wheels) are definitely infringing on the market. Every skid steer manufacturer from John Deere to Bobcat seems to have a compact track loader these days, helping to shore up dwindling market share. Track loaders are looking to become even more popular than wheeled units in certain markets (landscaping especially).

“Compact track loaders will not only have an impact on skid steer loaders, but they will also affect other machine categories as well because they are very productive,” says Jim Hughes, brand marketing manager for Case Construction Equipment. “The landscape, residential construction and utility markets are seeing the greatest increase in compact track loader sales.”

These are just a few of the big market trends we’re tracking with the help of five big name players in the skid steer industry — Bobcat, Case, New Holland, John Deere and Gehl. To start the New Year off right, CE sought the insight of the industry’s leading loader manufacturers. Just peruse the next three pages and uncover a bevy of advanced market knowledge on the expansive skid steer industry.

Keith Gribbins is managing editor of Compact Equipment.

New Holland Construction

John Deere Construction & Forestry Division

Bobcat Co.

Gehl Co.

Case Construction Equipment

New Holland Construction
Jorge DeHoyos, Brand Marketing Manager of Skid Steers

1. Can you give me a little history about your company and the skid steer market?

New Holland has been a pioneer of skid steers since the early 1970s. The L35 was the first model built. We claimed the term Super Boom soon after that with other models. We believe this to be the first lineup of vertical lift machines in the market. New Holland skid steers continue to be upgraded as the demand increases for more power in a smaller machine, aesthetics and the need for better operator comfort. We’ve introduced models with higher horsepower and introduced a new lineup of compact track loaders. New Holland has standardized features such as suspension seats, a wider wheelbase and a low center-of-gravity for better operator comfort.

2. How many skid steers were sold in 2003? 2004? 2005?

Our forecasting group lists the North American skid steer industry as approximately 57,000 in 2003 and 65,500 in 2004. We’re projecting a slight increase in 2005 to 66,500. The compact track loader population, we believe, has multiplied tremendously. Although that market is not currently reported accurately, I have seen figures ranging from 16,000 to 22,000 this year. I’m sure this has slowed down some of the skid steer market growth.

3. Do you see any declining markets for skid steer loaders?

There are some flat markets, such as rental, highway and bridges, but we don’t see a noticeable decline in any market. In machine size segmentation, the smaller sizes [under 700 lbs of capacity] also appear to be flat with some moderate decline. The walk-behind models [compact utility loaders] are difficult to measure, but appear to be the major cause of that decline.

4. Which are the more popular machines — radial or vertical lift skid steers? Why?

In a recent independent research study, we found that it is not completely clear that buyers understand the difference between radial and vertical lift patterns. What buyers do understand, however, are terms such as reach, height and stability. New Holland promotes the Super Boom line as reaching farther and higher vs. simply a vertical lift machine. There are some radial lift machines that have respectable reach and height specifications. The machines that can accomplish those highly sellable traits will be more popular among landscapers, material handlers and some residential construction customers.

5. Do you think compact track loaders (also called rubber track loaders) will have a big impact on skid steer sales in 2006?

Compact track loaders will most definitely have an impact on skid steers, mini excavators and loader backhoes. For skid steers particularly, we can estimate the ratio of skid steers to compact track loaders will be four to one next year; compared to a nine to one ratio five years ago.

6. Do you see compact wheel loaders affecting skid steer sales at all?

This can be debated — and has been debated over the last few years — especially with some skid steer producers building units with capacities way above 3,000 lbs. Compatibility of attachments makes cannibalization more probable. The skid steer fans will tell you, however, that compact wheel loaders lack the agility, mobility, compact size and fast cycle times associated with skid steers. In some applications, such as material handling, the compact wheel loader will make a dent in the large skid steer segment. Fortunately for the skid steer producers, that segment size is small.

John Deere Construction & Forestry Division
Gregg Zupancic, Product Marketing Manager for Skid Steers & Compact Track Loaders

1. Tell us about John Deere’s skid steer lineup today.

John Deere has been in the business since 1998 and has sold tens of thousands of skid steers and compact track loaders over the past few years. Our line of equipment is known for providing the industry’s most productive products with high uptime designed features at a low daily operating cost to the customer.

2. Which companies have the biggest market share for skid steer loaders in the North American market today?

Bobcat is the share leader in skid steers and John Deere has gained significant market share in the past few years, closing in on the number two position at an extremely fast pace.

3. What growth markets do you see for skid steers?

The construction industry and the landscape industry have been the main economic highlights for most of this century. These segments offer the largest growth potential for the light equipment market segment in 2006 and beyond.

4. Do you see skid steers getting bigger or smaller?

We believe that you will see a few competitors adding some larger models to their line over the next year or so to match the size and power of the 332 model that Deere has been selling since 2001. However, we do not believe that machines will go much larger than 3,200 lbs of rated operating capacity because those machines would no longer possess the traits or dimensions of how a skid steer is supposed to act or operate. In addition, many customers will move past an extremely large skid steer to a wheel loader that will better meet their higher capacity and performance needs.

5. How have creature features changed over the years?

During the late 1990s, most consumers were looking for a low cost skid steer to operate like a mechanized wheel barrow. Today, customers are increasingly moving to skid steers as their primary piece of operational equipment with creature comforts including enclosed cabs, heat and air conditioning, suspension seat, 12-volt systems and push button Quik-Tatch.

6. Is self-leveling popular?

The self-level option tends to be popular with the low hour or weekend users. Professional operators tend to go without the self-level option because it tends to get in the way of high productivity applications.

Bobcat Co.
Mike Fitzgerald, Loader Product Specialist

1. With so many manufacturers in the skid steer market, what is Bobcat doing to become a bigger brand in the North American skid steer marketplace?

Bobcat continues to introduce new technologies to separate itself from the competition, like selectable joystick controls with speed management, the industry-leading chaincase and a hydraulically driven SmartFAN. Bobcat still offers exclusive features including the only skid steer loader with no chain adjustments required, and the only skid steer loader with a transversely mounted engine.

2. How many skid steers do you sell in your lineup today?

Bobcat currently manufactures 10 skid steer loaders, including vertical and radial lift path configurations with rated operating capacities from 700 to 3,000 lbs.

3. Give me a price range for skid steer loaders — from the smallest to the largest.

The smallest would be the Bobcat 463 skid steer loader with a 36-in. construction and industrial bucket, costing around $16,474. The largest would be the S300 skid steer loader with an 80-in. construction and industrial bucket, costing $35,545.

4. Is self-leveling popular?

Yes, self-leveling is a popular option for Bobcat skid steer loaders for those applications that have a need to keep the attachment level. This feature is utilized when handling palletized material or to keep a bucket attachment level while it is lowered or raised.

5. Is the skid steer attachment industry growing?

As the popularity and growth of skid steer loaders continues, so does the attachment industry. Bobcat manufactures more attachments — both in type and quantity — than any skid steer loader or third-party company in the market with more than 75 unique attachments.

Gehl Co.
Kelly Moore, Product Manager of Skid Loaders and Compact Track Loaders

1. Can you give me a little history about your company and the skid steer market?

Gehl began its first entry into the skid loader market in 1969 with an outside manufactured single model skid loader. We began our first manufacturing of a loader in 1973 and continued to this point now with a full family line of seven models into 2006. Primarily starting in the agricultural markets, Gehl skid loaders have expanded into construction markets worldwide. We currently have seven models ranging from 35 hp and 1,050-lb capacity to 115 hp and 3,675-lb capacity units. Our loaders are known for ease of operator control with our Gehl T-Bar hands-only control system, comfortable operators cabs, ease of service and maintenance with tip back ROPS and powerful drive torque in every model.

2. When did skid steer sales peak?

Skid loader sales would have peaked in 2000 with approximately 71,000 sold in North America.

3. How many skid steers do you think will be sold in 2006?

For 2006 projections, it is difficult to assess, but based on overall business conditions and the economy, it appears there will be slight growth into the New Year. The markets for skid loaders will remain the same — general construction first, then landscaping, private users, rental and agricultural.

4. What is the most popular size of skid steers?

The most popular sizes in skid loaders are generally in the 1,700-lb size units as customers are moving up in sizes for more load capacity, performance, lift height ability and power. The price range for this series would be in the range of $25,000 to $27,000. The range of skid loader prices would be generally from approximately $20,000 to $50,000.

5. What kind of engine options do contractors have when buying a skid steer?

Contractors have many options in engines when buying a skid loader because of the variety of engines used by loader manufacturers today. In Gehl units,
customers have an option of either a naturally aspirated or turbo engine in two loader models for additional customer selection.

Case Construction Equipment
Jim Hughes, Brand Marketing Manager for Skid Steers

1. Tell us about Case’s skid steer product line today.

Today’s Case skid steer loaders have rated operating capacities that range from 1,500 lbs [the 410 model] to 3,000 lbs [the 465 model]. They come in both vertical and radial lift geometries. Case currently has eight models in its skid steer loader lineup — the 410, 420, 430, 440, 435, 445, 450 and 465. Case machines are known for: increased productivity, which means putting more money in your pocket; outstanding operator comfort and ease of operation, which increases productivity; easy service access, increasing uptime and making daily service easier; and a robust design, which increases machine life and lowers repair costs.

2. What have been the major market evolutions in the skid steer industry over the last two years?

Low effort controls and operator comfort are big advances in skid steers. Not only that, but engine
horsepower and breakout force have also significantly improved.

3. Which are the more popular machines — radial or vertical lift skid steers?

It really depends on your application. If you are looking for a lift and carry machine — like loading dump trucks — you want a vertical lift machine. It allows for easier dumping to the center of a dump truck. If you are primarily using the skid steer for digging, you could use a radial lift machine.

4. Give me a price range for skid steer loaders — the smallest to the largest.

Case skid steer loaders range have a list price from $27,000 to $56,000.

5. Skid steers have never really caught on big in Europe. Why is that?

The Europeans have a tendency to use compact wheel loaders in place of skid steer loaders because compact wheel loaders are more comfortable to operate than skid steer loaders — even though they may not be as productive or versatile. Also, size of the skid steer loaders could be an issue as the smaller skid steers are more popular over in Europe than the larger units. They are a little more maneuverable and can fit in the tighter work areas found in Europe.

Keith Gribbins is managing editor of Compact Equipment.