Caterpillar's changing production approac

Caterpillar is changing its production approach for two key product lines; mini excavators and crawler drills. Caterpillar and Wacker Neuson are to end their agreement for the manufacture of mini excavators, while Caterpillar will cease production of crawler drilling rigs at its plant in Texas.
November 28, 2016 Read time: 2 mins

178 Caterpillar is changing its production approach for two key product lines; mini excavators and crawler drills. Caterpillar and 1651 Wacker Neuson are to end their agreement for the manufacture of mini excavators, while Caterpillar will cease production of crawler drilling rigs at its plant in Texas. At the same time, Caterpillar is forming a single research, technology and product development division to deliver ‘high-quality product differentiation and system integration’. Current Advanced Component & System Division (ACSD) vice president Jean Savage will lead this newly formed team of ACSD and PD&GT employees. The manufacturing functions within ACSD will be led by current ACSD Operations general manager Steve Ferguson, who will report directly to Resource Industries group president Denise Johnson and drive lean, cost-competitive component manufacturing operations.

For the past six years, Wacker Neuson has been building mini excavators for Caterpillar at its plant in Hörsching, Austria. These have been badged as Caterpillar products. However this partnership is now being phased out and instead Caterpillar will switch design and production of the smallest hydraulic excavators in its line-up to its own facilities from the start of 2018.

According to Caterpillar this move will allow the firm to focus on developing its global mini excavator business. The company says it will be able to leverage existing facilities and design teams to deliver cost effective and efficient new machines weighing less than 3tonnes. 

Caterpillar’s Building Construction Products Division will design and manufacture the new machines. These will utilise proven technology and features from the larger Caterpillar mini excavators. The partnership has been highly successful for both firms. However the firm recognises that the market for these products has grown has decided that developing its own models will prove beneficial for its future business.

Wacker Neuson meanwhile says that it will continue its international growth strategy, distributing its extensive product range of excavators through its global sales channels.

Caterpillar is also discontinuing production of track drills within its Resource Industries portfolio, and no new orders will be taken.

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