Cover Story: What’s Big is Small
Trends in Compact Equipment
While equipment itself is getting more specialized, many commercial users are diversifying and expanding their applications of power equipment. The best example of this trend is seen in the growing market of compact equipment. Skid steers, tracked loaders, mini excavators and more – sometimes referred to as compact “construction” equipment – are increasingly the choice of landscapers, arborists and even weekend warrior homeowners with trailers and a rental shop nearby. It’s not just about construction.
We spoke with several equipment makers about the changes to the products and the marketplace, including a special look at electrification.
What does construction mean?
“On the compact construction equipment side, we’ve expanded our distribution network beyond our construction dealers into more ag and turf dealers,” said Emily Pagura, product marketing manager for John Deere construction. “We find that a lot of landscapers may have a relationship with a Deere turf dealer, and they may not be buying compact loaders from there. We want to help our dealers help a broader range of pro users.”






Deere is well known in the construction market, so it makes sense for the company to market those vehicles to commercial landscapers through its own dealers in their specific markets. Meanwhile, Kioti is relatively new to this “construction” market, having launched skid steers and compact track loaders within the last year. The OEM is easing into the marketplace; it initially allocated its new SL and TL machines to about 50 dealers and is now placing them in more than 100 Kioti dealers nationwide.
“As these vehicles have become more popular, we see fewer compact tractors and more construction equipment in landscape use,” said Justin Moe, product manager for Kioti’s new compact equipment line. “Among ag users, there is some crossover between tractors and skid steers. But with construction uses and the heavier materials, the compact construction equipment is better.”
Moe said that Kioti has seen construction-specific crews buying the new compact equipment. “We’re also attracting users in the ag market and in landscaping,” he said. “We come in at a competitive price point, with features like hydraulic controls and the roll-up door, plus the warranty.”
It’s hard to tell where construction ends and landscaping begins with many companies. That increases the appeal of smaller and more versatile equipment. “If a contractor is working on a jobsite to dig footings and a foundation, it’s not much different if they’re putting in piping for a water garden and an irrigation system,” said Brady Lewis, product manager at Case New Holland. “We think about how the customers are using equipment on different jobsites.”
Read about Case’s EV efforts here.
Is smaller better?
“Contractors are recognizing that these small machines can do a lot of work and they’re less expensive, easier to operate, easier to trailer, and lighter weight,” said Sam Dando, senior product marketing manager for Toro’s Sitework Systems division. “People are recognizing, on the contractor side, it’s a versatile machine and easier to operate than a traditional skid steer. That’s driving a lot of the business.”
Smaller is relative, and the smaller machine Dando is talking about is the Toro Dingo. These stand-on mini loaders are making a hit with pro users and as rental equipment for DIY homeowners. I visited a dealer near St. Paul, Minn., that carries Toro and Bobcat, among other equipment. The sales manager, who asked to remain anonymous, said that Dingos and Bobcat MTs “are not just digging machines anymore. These are full operation machines. And while some jobs still require a full skid steer, these are increasingly popular.” He said arborists are some of his best customers, and they’ve been busy in this area for a while, taking down diseased ash trees throughout the city, among other tree work.
Listen to the OPE People podcast with on the Toro Dingo development.
Smaller is a big part of the reason Kioti saw the need for its new vehicles. These machines are becoming more popular, said Justin Moe, around the world. “Tighter infrastructure in Europe and Asia means construction crews and landscapers need smaller equipment. That is increasingly true here now as well.” Plus, smaller businesses welcome the better price point of these vehicles. “They don’t need a full-size dozer or big loader,” said Moe. This compact equipment, whether for construction or landscaping or a mix, is helping fuel urban and suburban growth.




The machines themselves can go only so far. “Attachments are key,” said Deere’s Emily Pagura. “Buckets and forks are commoditized, but attachments like mulching heads and rotary cutters, we can meet a wide variety of needs with attachments. It’s about more versatility.”
“The biggest trend I’ve seen is that customers are looking for machines that provide flexibility,” said Lee Smith, Bobcat’s director of products, ground maintenance. “They may have purchased an MT with a bucket to move dirt. Many other attachments fit their machine and can increase flexibility. The customer can make this equipment do what they need with the right attachments.”
What do dealers need to know?
“Dealers who have not had this equipment for long, they are learning that the utilization rate is high, maybe 800 or 900 hours a year. It’s a different level of customer,” said Justin Moe. “Compact equipment is always moving, always in use. They need to be ready with more parts availability, with core components and wear items.”
They also need to know that this might be a cost commitment that some customers have not made before. For small landscapers growing a new business, this is an expensive outlay. “The owning and operating cost – not just the upfront – is the way to dealers should discuss this with buyers. We know that downtime is bad for business, so we make sure the dealer can help keep machines running and at work.”