Compact construction machinery performs well in a variety of fields, including civil works in narrow spaces, house demolition, as well as snow removal, agriculture, forestry, livestock farming, and landscaping.
The global market for compact construction machinery is growing significantly. This growth is driven by the economic recovery following the COVID-19 pandemic and the ongoing urbanization trend.
Additionally, there is a growing demand for environmentally-friendly products, particularly in Europe.
To meet these needs, Hitachi Construction Machinery Tierra is working to improve the productivity of its compact products and enhance its development environment.
――Please explain the positioning of the compact business within the Hitachi Construction Machinery Group, as well as the role of Hitachi Construction Machinery Tierra.
Demand for compact products, such as mini excavators, has been growing since the 2010s. This market continues to expand in the 2020s. In 2022, Hitachi Construction Machinery shifted to a business unit (BU) system, and the compact business also became a BU in light of market conditions. Along with construction and mining, the compact business is expected to play a key role in supporting the growth and development of the Hitachi Construction Machinery Group.
The BU system is an integrated organizational structure covering everything from development to production and sales. However, Hitachi Construction Machinery Tierra already had such a structure in place, so our company simply became a compact BU. Still, this was not enough to collaborate with other departments. Therefore, we established a business strategy department within the head office of Hitachi Construction Machinery. This has enabled us to strengthen our collaborations with other departments.
――How do you view the market trends for compact products?
When the pandemic subsided, demand from users and retailers around the world skyrocketed. Our company lacked the production capacity to meet this demand, so we upgraded and reorganized our production facilities. This increased our production capacity by about 30%.
The main markets for compact products are Japan, the United States, and Europe, but demand is growing in emerging countries due to urbanization. However, Chinese manufacturers are entering markets in India and other Asian countries. Therefore, strategies to counter this trend are necessary.
――I think Chinese manufacturers compete based on price, but to compete globally, it is important to have high functionality and quality.
Despite their small size, compact products must have the same functionality as medium-sized products, and that functionality must be packed into a small space. This requires a high level of manufacturing expertise, from product development and design to manufacturing and assembly. To achieve this, incorporating IoT technology and robots into mass production lines is essential, and we actively incorporate ideas from the construction site. We believe this approach improves productivity and quality.
The decision to relocate and expand the development testing site to a nearby location was made based on the expectation that it would significantly contribute not only to safety confirmation and evaluation, but also to areas such as product development and quality assurance.
――Hitachi Construction Machinery Tierra is also focusing on electric construction machinery. Could you please tell us about your future development and sales strategies?
We recently developed the ZX55U-6EB, a 5-ton class battery-powered excavator, and began selling it mainly in Europe in 2024. In the future, we will need to expand our lineup further.
Interest in electric construction machinery is growing in Japan. This “interest” has turned into “action,” including purchases. In fact, the ZX55U-6EB set, which includes portable charging equipment, has already achieved sales in Japan. We have obtained certification from the Ministry of Land, Infrastructure, Transport and Tourism’s “GX Construction Machinery” certification system, and we plan to focus on domestic sales.
――Could you tell us about Hitachi Construction Machinery’s compact business, the future envisioned by Hitachi Construction Machinery Tierra, and the challenges that lie ahead?
Although Hitachi Construction Machinery Tierra’s roots are in Kumamoto, the Shiga Factory has been in operation for half a century. Over that long period of time, we have built a deep and close relationship with the Koka City community. As manufacturers, we must produce safe, reliable products that our customers choose. While production activities are important, we also want to be a company trusted by the local community.
On the other hand, we believe that further globalization is the key to growth in the compact business. In addition to Japan, the United States, and Europe, India is an area that deserves close attention, as demand is expected to expand there in the future.
We aim to continue producing high-quality products while improving production efficiency. Our goal is to achieve a double-digit global market share for compact products.
Kazuhiro Ichimura
President of Hitachi Construction Machinery Tierra, Co., Ltd.
Head of the Compact Business Unit, Hitachi Construction Machinery Co., Ltd.
Born in Yamaguchi Prefecture. Joined Hitachi Construction Machinery Co., Ltd. in 1988, working in the Wheel Excavator Group, Medium-Sized Excavator Design Department, Hitachi Construction Machinery Tsuchiura Works. Subsequently, worked in the Construction Systems Division of the Business Management Headquarters, the India Division of the Sales Management Headquarters, and the Construction Division of the Research and Development Headquarters before assuming his current position in 2022.
Text: Mutsumi Saito Photos: Shinya Kojima
Report from the Compact Site
