I-R seeks simplified range

Herbert Henkel, chairman, president and Chief executive of Ingersoll-Rand (I-R) has set out the company's strategy. "Our goal is to replace large, single use pieces of equipment," he said, citing the Toolcat as a good example as it replaces multiple machines with a single product.

"Customers are very open to new solutions and we have been working on a lot of different machines," he said, adding that similar innovative launches will occur each year over the next five years. "We are going to focus on innovations we can do ourselves - that does not mean we are blind to acquisitions."

Generally he sees the typical Bobcat customer as being a small contractor, while those for I-R are somewhat bigger, and the aim in dual branding is to present a greater range of existing products to each set of customers.

This strategy will not only see I-R rollers branded as Bobcat, but Bobcat telehandlers signed as Ingersoll-Rand. However, the brands will not merge. "Our back office staff already work closely together but we want to strengthen our customer-facing branding," said Chris Vasiloff, president of infrastructure at I-R.

Henkel did not see Bobcat's 40% share of the skid steer market as a barrier to growth: "Change the name skid steer to compact equipment and all of a sudden that category grows."

He believeds that the company could double its size and the launch of I-R Finance and I-R Used Equipment are a key part of realising that potential.

As to widening the product range with larger equipment, Henkel did not think that would be particularly useful as a larger excavator would appeal to customers the company could not fully service with its range of other products.