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This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at Entrevista a José Cuadrado, vicepresidente de Maquinaria Compacta en Doosan Infracore Construction Equipment para la zona EMEA

"The history of the center of production and development of product from Dobris is very positive for Bobcat"

Interview to José Square, vice-president of Compact Machinery in Doosan Infracore Construction Equipment for the zone EMEA

David Muñoz22/07/2013

During the last Glass Confederations a known signature of telephony launched a spot advertising remembering us that in Spain no only play well to the football but we also have big figures in the field of the scientific investigation, of the architecture, of the medicine, of the Big… engineering professionals that have turned into international referents in his field of work and that also contribute with his work to reinforce the Mark Spain. In the field of the machinery of Public Works also find these histories of success, cases like the one of José Square, a vallisoletano that left to Manchester to improve his English and that, with 40 years, already is the responsible maximum of the mark Bobcat for all Europe, Africa and Middle East. We have had the pleasure to interview him to know his particular vision of the situation of the market and to deepen in the advantages of the factory that he directs in Dobris (Czech Republic).

September marks six years of the start of operations of the factory of Bobcat in Dobris (Czech Republic). Do you evaluate this period?

In the year 2005 mark us like one of the big strategic aims of the company that, in a term of 6-8 years, 75% of the product that sold in Europe, would have to be designed and produced in Europe. We bet for investing in a centre of production and development of product that allowed us give a qualitative jump by means of the creation of a more adapted product to the needs of the European customer regarding provision, quality and term of delivery.

Six years after his inauguration can affirm that the bagaje is very positive. To day of today have of a factory of first level that in the 2013 will produce more than 11.000 machines. Our departments of engineering develop the product of agreement to the needs of the European customer. Besides, we have of a centre of learning that in the 2012 received to more than 1.000 customers. And I go him to say more, does a month begin the works of a new centre of Investigation and Development that will allow us apply the most modern technicians of development of product. This centre, situated in front of the factory, will inaugurate around the middle of the 2014. The way has not been easy but are where wanted to be.

Joseph square, Vice President of compact machinery in Doosan Infracore Construction Equipment for the EMEA area

Joseph square, Vice President of compact machinery in Doosan Infracore Construction Equipment for the EMEA area.

What have they meant really these facilities for the expansion of the Bobcat Company in the EMEA area?

In the year 2006 the circumstances of the markets were obviously different to the ones of now. The factories that Bobcat already had by those years delivered by United States were to a level of production very high, by what had felt to increase this capacity of production.

When a company poses increase his productive capacity can do it well expanding the factories with which already explains or creating new factories. In our case opt by the second option and did it creating ours first centre of production in Europe.

Until the opening of Dobris, Bobcat had worked in Europe more like a channel of sales. Had his factory and his engineering in EE UU and operated in Europe by means of a commercial network. They were years of big commercial expansion where the available equipment and marketing did an exceptional work regarding the creation of a network of distribution and the expansion of the mark.

The big step in the year 2006 was to say "do not want to be in Europe only a channel of sales but an integrated company with full capacities to develop and manufacture product. A product adapted to the needs of the European customer regarding provision, quality and term of delivery”.

In summary, can say that we take advantage of the opportunity that offered us a market in growth to answer in front of this increase in the demand with a centre of production and development of product in Europe.

2007 also was the year of the incorporation of Bobcat to the structure of the Group Doosan. Which are the main synergies that, in his opinion, obtains Bobcat like one of the marks of Doosan Infracore Construction Equipment?

Usually, when speeches of companies that join have to look two appearances: on the one hand the complementarity of his range of product and, by the another, the geographic markets where these two companies have available capacity. In both senses, Doosan and Bobcat had and follow having an excellent complementarity. Doosan Is a company with a recognition and a very high penetration in Asia, whereas Bobcat has a big penetration in Europe and EE UU. And regarding product, Doosan is a company traditionally of heavy machinery, with a quality contrasted and Bobcat contributes a very complete offer of compact machinery. The final aim of this union is can offer a complete range to the customer and have capacity to sell all over the world.

Production line at the factory in Dobris (Czech Republic)
Production line at the factory in Dobris (Czech Republic).

But are not very different markets the compact machinery and heavy?

Both markets have points in common, but certainly are different markets, with different dynamics and a large part of customers and different applications. The key is to take advantage of the synergies between both brands, that is, but without forgetting that differences require that we have specific approaches.

Within the EMEA region, from which countries are they having currently a greater demand for Bobcat equipment?

First of all I have to say that there is a big difference between the markets of mini-excavators and skid steer loaders. As for the first, the traditional destinations are in Europe. Germany, England, Italy and France are between 70% and 80% of the mininiexcavadoras that are sold in Europe. They are markets that are not now growing in volume but in those who have major ambitions to gain share. Indeed, we are already doing it.

And as for the skid steer loaders, markets that are more pulling currently are not exactly Europeans but those of Middle East, Africa, Russia, Israel, Turkey... Ten years ago the South of Europe, mainly Italy and Spain, agglutinated approximately half of the sales of skid steer loaders, but the strong economic crisis in southern Europe, combined with the growth of the economies of the Middle East and Russia, make that a large part of the demand has gone to regions that previously commented.

And in these last areas commenting is not growing also demand for mini-excavators?

The truth is that they are still small for mini-excavators, but with important growth markets. The concept of the excavator has a lot travel! The logic is very simple and is related to the productivity of the product. Manufacturers increasingly make machines with higher levels of quality, comfort and performance. The excavator is a very intuitive product where the operator and machine share and become one. The excavator of the future will be the machine where the operator sits arm of the machine and the extension of your own arm.

Also in Spain?

Spain has traditionally been a country of skid-steer, mixed and retro, where the excavator is still a concept in development. On the basis that it is very difficult to make judgments about the growth of the concepts of machinery when a country is in a crisis as deep as Spain, Yes is interesting to see in the Spanish market that today data, are already sold so many mini excavators as skid steer loaders. It is very symptomatic of the potential that has this machine even in Spain.

Bobcat keeps enhancing its range of compact excavators, with a full range up to 8 tons
Bobcat keeps enhancing its range of compact excavators, with a full range up to 8 tons.

I imagine that in Spain the excavator has not developed traditionally both by the pull which has always had the concept of mixed, isn't it?

Surely Yes but you have to understand why. The concept of the joint, as well as the skid steer, have something in common. They respond to the need for versatile and multipurpose equipment. They are two very popular especially in countries of high economic growth that did not even reach a high degree of sophistication in the use of machinery. I have a theory, by so-called very debatable, that puts in relation the level of economic development of a country and the use of one or another type of machinery. Typically when moving from a labour intensive economy to an economy of mechanization, by the first rising, mixed loader and compact products are growing. It is what is happening now in Africa, Middle East and Russia, looking at these machines multi-purpose products that offer many features. That's where we were in Spain 15-20 years ago.

Then the markets go into a second phase, of more sophistication, where customers are looking for more specific products that bring higher productivity for each application. The specialized machining begins to be profitable. It is preferable to have a machine that makes you a concrete work faster and with lower operating costs, that not a polyvalent team, which is less productive. That's where is Germany, France, United Kingdom, or the Nordic countries, where the excavator, the telescopic or tracked loader are gaining more ground.

And in Spain we will reach this level of maturity when the market situation improves?

No doubt, the crisis will pass and many things will change. Some products will gain in popularity while others lose. Some things will not change as that Bobcat remains number 1 in the sale of compact machinery.

How would you describe implementation that has today Bobcat in Middle East and Africa, both skid steer loaders and mini-excavators?

These markets, within the compact machinery, are skid-steer loader or loader mixed, markets where the excavator is still a concept in expansion. Bobcat has dedicated 10 years extensive resources to expansion in these markets. At the moment we have a stable distribution network and market over 50% in wheel loaders share. The future in these markets is not alone in having a high market share but in making sure that the markets grow.

And in Europe... by where they spend the growth strategies of Bobcat?

In the centre and in the north, the biggest countries like Germany, England, France, the Nordic countries and Benelux have his more or less flat markets. There is not sufficient available credit and the public investments are very limited by the politics of austerity of the different governments. Therefore, our growth in these zones comes by the side of gain in quota of market in miniexcavators. In fact, in the last three years have increased here a point and half ours participation, and our aim is to keep growing.

Regarding the south of Europe, with Spain, Italy, Portugal and Greece in command, these markets have fallen of dramatic form, and our aim now goes through to try keep our network of distributors, and for reinforcing our mark and our product for when the market backstitch. They are markets where the competition is abrasive because where before there were 100 sales now there is 6 or 7, and all the world struggles for surviving. It is the moment to centre in the postventa, support to the distributor and prepare for better times, that will come.

What is the vision of Bobcat on the African market? It offers a high growth potential?

Africa is a diverse continent. On the one hand you have South Africa, Africa's most economically stable country. On the other hand, is North Africa (Tunisia, Algeria, Morocco...) where there is also an interesting and strong, with much public infrastructure and available money growth. Then, there are other countries in North Africa that have grown over the last ten years but who due to their recent political conflicts (Libya and Egypt) have seen slower expansion. And finally, we found the center of Africa, a continent in itself where it is difficult to sell for its political and geographic complexities. The investment of Chinese companies there is very big, especially in the exploitation of natural resources, but it is still a very small market in terms of volume of compact machinery. Ultimately, South Africa is a reality, North Africa has immediate potential, and Central Africa is a bet for the future.

Bobcat is located in the EMEA region of a market share in skid steer close to 45%
Bobcat is located in the EMEA region of a market share in skid steer close to 45%.

I recently read that Doosan Infracore enjoys a world market of compact wheel loaders share close to 40%. Do you think that they have peaked? How intend to maintain / strengthen this leadership?

In the EMEA market share of commenting rises even to 45%. When you have a high participation, we must think that maintaining that position is already a challenge in itself. It would be a mistake to assume that this 45% was secured and that we have to devote to other things. You really have to think about how we got to this percentage, and what measures we must take to preserve it. But most importantly, thinking that when you have a 45% market share you have to make sure that the market is growing and have a high share much of the responsibility for this growth.

As well as the mini-excavators market is very fragmented, and its growth depends on actions that many manufacturers who make it up, pushing together for the promotion of this concept of machinery, in the case of skid steer, Bobcat where has almost half the market, growth depends on much of what we do.

This is good but also required to undertake the actions necessary to transform this situation in business. There are markets of skid steer loaders that were large, such as Spain and Italy, where there is lot of competition and where everyone pushes to promote the concept of the skid loader. But there are also smaller markets, where there are just two or three competitors, something that may seem like good news, but beware!, from our point of view it is good to have competition to help expand the concept within these markets.

Despite being present in the market of excavator for more than 25 years, do you think that much of the growth of Bobcat may also come in the next few years by this market segment?

The growth will come from both products. The economies of the Middle East, Russia and Africa, undoubtedly pulled loader market. The market of mini excavators, more focused on Europe, could grow less but we believe our market share goals to compensate. Mini excavators in Europe and Middle East market is about five times larger than the wheel loaders. This means that a minor market share reports to higher sales.

And what are the competitive values of Bobcat excavator to continue to grow in a market so mature?

In the last five ours years ambitious leaf of route for mininiexcavadoras has gone through to attain three aims: in the first place, the modernisation and enlargement of our range of products. In second term, a very clear approach to the quality of the product, following our studies of market that signal that the buyer of miniexcavators wants, first of all, a productive product, that last him and that do not give him problems. And like third big aim was can produce in Europe for recortar the terms of delivery and adjust us to the specific requests of the European customer.

Arise to develop some diversification strategy aimed at expanding its range of compact machinery? Have thought, for example, create your own range of mixed or dump trucks?

Our roadmap in mini excavators for years is loaded with new features: new generations, new specifications, new options, focusing on the improvements that we request the customer in terms of quality, performance and comfort.

As for the skid steer loaders, it is a market that is continually evolving. Our studies tell us that customers are demanding more and more comfort, visibility, quick to move from one place to another, better access to the machine, etc. And our Engineering Department is working on all these concepts. Already, the latest generation of compact loaders greatly improved these levels but we are aiming to go even a step further.

As regards the manufacture mixed loaders, tell you that we have not considered it never would be a lie. I think that everybody in this industry believes all the products that are on the market, at one time or another. Now, Yes can assure you that it is not now among our priorities to design or manufacture a mixed loader. We believe, as I indicated before, that market, as it is more sophisticated, is seeking solutions more specific, capable of giving a higher productivity in specialized applications.

Does diversification also achieve a greater presence of Bobcat applications different to the construction/public works?

Yes, above all with the loader. Being a tool, this machine gives the possibility, with its many attachments, access to less traditional markets. In fact, in recent years we have had success with some landscaping, asphalt milling machine accessories such as bulldozer, trimmer... One of the priorities in line of skid steer loaders is to create tools that help us to diversify our business.

The company plans go through double its production in Dobris, within a period of five years
The company plans go through double its production in Dobris, within a period of five years.

A fundamental aspect for any manufacturer, regardless of their sector of activity, is to reduce their production costs unless you decrease the quality of their products. How is it I operating in this respect on the ground of Dobris?

The history of the center of production and development of product from Dobris is very positive for Bobcat. Always start with a factory requires a time until you reach the optimal levels of production. Improvements that have improved the levels of internal efficiency in an impressive way, to the extent that Dobris has become a reference in the manufacture in Bobcat have become in the last 2-3 years. To produce in Europe has allowed us to reduce costs of storage and transportation, and to take advantage of improving productive efficiencies in our factory. The Bobcat product quality is a sign that we don't want to compromise.

What is the maximum Dobris factory production capacity? Does at what levels you move now?

This year we will finish with more than 11,000 machines, adding skid steer loaders and mini-excavators. Please note that 65% of the product we make in Dobris, stays in our region, but the remaining 35% is going to USA and Asia.

We have plans to multiply by two production, expanding even our facilities. Our estimates of production and sale go through to reach within a period of five years 20,000 units, both market growth and incorporation to Dobris of models that are currently manufactured at other plants.

How many were produced in the worst moment of the crisis?

In 2009 our machines manufacture did not reach 6,000 units, in part by the economic crisis, in part by that the factory was still in the process of growth.

Finally, as a summary, would arise as the next years for Bobcat? What are their short, medium and long term forecasts?

Really, with much optimism. We have passed a difficult time of the world economy and have it done not only surviving but improving, investing and doing more and better. The great legacy of the last years is that we have created a business model that allows us to continue to grow. Dobris is no longer only a factory, is the seat of an Engineering Department with a capacity of developing product and produce it with excellent quality and delivery of first level, an experienced purchasing department...

We see the future with good prospects. Not confident that the industry will grow in a huge (our forecasts are that Europe will grow between 2 and 5% in the next five years, and Middle East, Africa and Russia continue to do so between 8 and 10%) but we do believe that our tremendous growth will come from initiatives that we take to gain market share, with new products and with the help of our sales network.

José square(Valladolid, 1973), a degree in economics and business, entered the world of machinery working as product specialist for the division of Ingersoll Rand portable compressors in Manchester (England). At age two, joined the Organization of Bobcat (at that time belonging to the Ingersoll Rand group) to the post of planning manager from the central of Belgium. Two years later he would stop to be product manager and director of the skid steer loaders Bobcat for the EMEA business.

Later, and for three years, Jose square served in Ireland CEO, Geith, a factory of the Doosan group specialized for more than 50 years in the manufacture of tools and quick couplings for earthmoving machinery.

With the latest restructuring of the Doosan group in its four lines of business, Joseph square has moved to the Vice-Presidency of Doosan Infracore Construction Equipment (DI CE) compact machinery for the EMEA region, being primarily responsible for the Bobcat brand in all areas (production, purchasing, engineering, product...) for Europe, Middle East and Africa.

Related Companies or Entities

Bobcat, S.L.
Doosan Bobcat EMEA S.R.O

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