#153 Re-Constructing China

The German company Wacker Neuson develops, manufactures and distributes concrete technology, compaction equipment, worksite technology and compact construction equipment on a global scale. In 2015 the company launched a new excavator line with 6 to 9 metric tons operatingweight. The new line was revolutionary in that it drastically reduced weight, made design changes, and for the first time the excavators were designed with their ownelectronic control system and software. They were very well received in the European market which appreciates advanced engineering and technology. Naturally, the company also started to offer the products in China, a market whose decades of economic growth have made it an important market for Wacker Neuson. Initial feedback from trade shows and promotional events was very positive – until Chinese construction companies started to use the excavators. The work force in China had less appreciation of the latest innovative technology, it was not as well trained as in Europe, and did not use the equipment correctly. As a result, mechanical failures occurred and service and maintenance requirements increased. Wacker Neuson stopped marketing the new product line in China altogether and regrouped: Should they resurrect older generations of excavators for China? Or should they make adaptations to the new line of excavators? Ultimately, by the end of 2018, the company decided to develop a completely new product line for the Chinese market that was more robust and had fewer and less advanced technical features.

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