In order to maximize the opportunities in the growing compact equipment segment Volvo Construction Equipment (Volvo CE) has today announced the launch of a new Compact Business Unit.
The new Compact Business Unit will:
- Take advantage of the shift to electrification in the compact equipment segment to secure a fully electric line up of productive and sustainable products across the whole compact range.
- Have responsibility for the whole value chain including development, assembly, purchasing and the go-to-market strategy (together with the existing distribution network) for the Compact offering, increasing touch points with customers.
- Operate as an independent entity within Volvo CE, fully focused on maximizing the opportunities in the growing market for compact equipment.
- Initially be responsible for compact excavators up to 9 tons and compact wheel loaders up to the L50 model.
As part of its ambition to lead the transformation journey through electrification and sustainable power, Volvo CE has set up a dedicated business unit for its range of compact equipment machines and solutions, with the aim of driving growth and profitability in this important and growing product segment.
An increase in population and urbanization has led to the expansion of the construction sector throughout the globe – with a particularly strong increase in the demand for compact equipment. The segment now represents 50% of the total market, compared to 35% a decade ago, with the growth trend likely to continue.
This new global business unit is the latest step forward in the company’s ambitions to lead the transformation of the industry and provide dedicated productivity-boosting solutions built to fit customers’ evolving needs. Thomas Bitter, Volvo CE’s Head of Technology, will take on the role as Head of the Compact Business Unit, from September 2023.
He comments: “Our pioneering work in electrification and digitalization has positioned us as an innovator in compact equipment. And now because of compact equipment’s ever-growing influence on the market, we are focusing our attention on our compact machine portfolio to provide customers with productive and sustainable products and services. The people who join us in this journey will not only develop specialized skills in this important area but be playing an integral role in our wider purpose of building the world we want to live in.”
The new Compact Business Unit will be comprised of committed and passionate people currently within Volvo CE as well as external talent.
Volvo CE was early in leading the way by making an industry-first move to shift its entire branded compact range over to electric and stop development of new diesel variants, back in 2019. Since this strong signal to the market, it has launched five electric compact models: the ECR25 Electric, ECR18 Electric and EC18 Electric excavators and the L20 Electric and L25 Electric wheel loaders. The EC55 Electric excavator has also been introduced to China.