Working in an environment where the demands of the customer are constantly increasing poses a challenge for most businesses no matter what industry they serve. But for equipment manufacturer and supplier Manitou Group, this truth simply emphasises the reasoning behind why it has chosen to prioritise one thing: its investment into research and development.
“We said, ‘Okay. We have this challenge, but by taking a long-term view when it comes to innovation, we can tackle it’,” Michel Denis says. “That’s why we decided to invest more in the people who work in our engineering rooms and our R&D department. If we let our innovation capacity slide, then our differentiation in the marketplace will be lost. The way we see it is that if we put more resources and more investment into the long term, then we will continue to grow organically and achieve success.”
The way we see it is that if we put more resources and more investment into the long term, then we will continue to grow organically and achieve success.
The strategy appears to be working well for the business. This year it launched several new machines, as well as a completely new agriculture range called NewAg that, Michel says, was “a breakthrough in the market in terms of functionality, innovation, performance, serviceability and cost.” It also supports its already strong position as a global market leader. Manitou Group has 5 key brands under its banner – Manitou, Gehl, Mustang, LOC and Edge – and it is able to provide machinery solutions to a wide range of industries, from farming to construction.
A strong brand with passionate people
Michel joined the business in January 2014 and was happy with what he saw. “Manitou’s leadership in this market was a driver for me to join the company,” he explains. “The brand image of Manitou is very strong: it has reliable machines, it’s a reliable company, and it has a good image around the world. It was a business which I was confident to be in. Manitou is a technical business, a B2B business, and it has an international model.
“With my past professional experience, it was not a complete 180-degree change; it was still in line with my experience and my education. It’s a family-owned company, and when I met with the family and the shareholders, I really understood that they are passionate people: passionate about the company, the product, the services, and the international network.
“They cared about the long-term vision of the company, which is key in our business because, having shareholders, every day we have to make decisions for the next 15 years as well as for the next 15 days. It was important for me to have a good fit with the family and shareholders, so when I went and met with them it was a great thing.”
Tackling challenges
When Michel joined, he says there were 2 main challenges that were quickly presented to him. The first was customer expectation. “It’s changing all the time. Before, all the customer was doing was buying the machine. Now there is much more that goes into it. They want something that will be the best for them financially and that will do the job exceptionally well. As the expectations are changing, we have to change the way we design, sell, offer contracts, and so on. It is a big change, and to face that head on we have restructured the organisation of the company,” he explains.
“We have put all of the people from the different divisions together: finance, spare parts, warranty, maintenance contracts, technical documentation and so on. All of these people used to be spread out around the company but now we say to them, ‘You are a key factor in a customer’s decision and in a customer’s expectations, so let’s all work together as a service organisation to ensure our customers are not only pleased with the machine but also with the service they get and the ways they are able to use the machine’. We want our customers to make money, to work more efficiently, and pay the smallest possible amount. So it was a big change, but it has made us a really dynamic player in the market.”
The second challenge was with regard to the environment. “Due to regulations, we need to focus on reducing the amount of pollution that our machines emit,” Michel explains. “It is a big challenge but it is something we are focused on.”
Flexibility is key
To help it tackle these areas, Manitou aligns itself with suppliers that have a history of excellence, reliability and flexibility. “Flexibility, in particular, is something which is key today,” Michel notes. “I have to be able to produce X machines per day today and maybe 4 times that within 4 months. I can’t say to the customer, ‘Sorry. I have a lot of demand so you will have to wait for your machines.’ We simply cannot do that anymore; it was possible some years ago, but it is not possible any longer. So flexibility is important, as is quality, which is something we will never compromise on.
“When we look at our partners, it is very important to have integrated processes with them. We have a lot of meetings to really understand each process and how we can combine the way we work with them, to be able to ensure the supply, the quality control and the flexibility for our customers.”
For Michel, the future of Manitou Group is all about growth, mainly organically and through external complementary opportunities. “In terms of our geography, we will not expand more because we are already in a lot of countries, but we can leverage our network and our global organisation with the products we do have,” he says.
“We will continue with our key brands, and we will address different market segments with machines in different types and sizes to stand out from our competitors. The biggest thing is that we need to ensure we are going in the same direction as our customers; that’s most important.”
