The new dynamics of compact equipment worldwide

With a fresh perspective gained from various industry roles, Yanmar CE North America President Anna Sgro discusses market transitions, customer-centric strategies, and the importance of resilience in the evolving compact equipment sector.

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With a career spanning leadership positions at Volvo CE, major US dealer Strongco, and global equipment auctioneer Ritchie Brothers, Anna Sgro has seen the construction equipment sector from a number of vantage points. Now at Yanmar CE as the President of its North America Region, she is seeing it anew – moving from larger general-purpose machines into the compact segment, where Yanmar CE is carving out a space as a brand defined by deep commitments to customer needs, through reliable products and solutions, and to the environment.

A market in transition

Asked to describe the state of the North American compact equipment industry, Sgro doesn't hesitate. “The market is becoming more crowded with lower-priced entrants who compete on cost rather than long-term reliability and lifecycle value,” she says. But within that dynamism, Sgro sees opportunity. “Customers want reliability – machines that don't break down and don't have to go back to the dealership. That's where Yanmar scores highly. Customers tell us they can run our equipment for eight or nine years, with just regular maintenance, and no worries.”

She points to another shift: the growing dominance of rental channels. Consolidation has seen mid-sized companies absorbed into rental giants, creating enormous buying power. Such influence can't easily be ignored. Add to this the retail entry of big-box stores such as Home Depot and Lowe's, and it's clear that routes-to-market are changing quickly.

Electrification, too, is looming. Although the construction sector is several years behind the automotive sector, the pressure to decarbonise is building. “There was a lot of excitement about electrification five years ago, but some of that expectation, and the pace of change, has cooled. It will happen — albeit slower than many predicted.”

Seeing through the cycle