9 hours ago
The Uneven Playing Field
In the heavy equipment industry, small and mid-sized contractors often find themselves sidelined by dealer networks that prioritize large corporate clients. While big buyers may represent fewer transactions, they command bulk orders and long-term contracts that dealers chase aggressively. This imbalance leaves smaller operators—who collectively make up the majority of the customer base—feeling neglected.
A former Deere and Caterpillar dealership employee recalled a company-wide meeting where the focus was on appeasing major accounts. Yet, when year-end revenue reports came in, the largest contributor wasn’t a single corporate client—it was cash sales from hundreds of small customers. These operators typically pay upfront, require minimal discounts, and consume fewer resources. Despite this, they rarely receive the same level of attention or support.
Dealer Culture and Human Factors
The core issue isn’t always the brand—it’s the people and the culture behind the dealership. Some dealers foster a responsive, customer-first environment, while others are bogged down by bureaucracy and poor communication. A civil engineer in New York noted that his local Caterpillar dealer, despite being the largest in the region, treated him with respect and urgency, even though he was a small buyer. Meanwhile, other brands like Bobcat and Kubota failed to return calls or follow up on quotes.
Responsiveness often hinges on individual employees. A motivated parts manager or service technician can make or break a customer’s experience. Unfortunately, high turnover and corporate consolidation have eroded this personal touch. One former sales rep described how his dealership was acquired by a larger group, stripping local staff of decision-making power and replacing seasoned professionals with spreadsheet-driven managers who lacked industry experience.
Parts Supply and Service Delays
Caterpillar consistently ranks high in parts availability and logistics. Their global distribution network ensures that even remote dealers can access components quickly. This reliability is a major advantage, especially when downtime costs thousands per day. In contrast, other brands struggle with inventory gaps and inflated pricing. A contractor in Oklahoma noted that Komatsu parts were “proudly priced,” while Volvo’s local dealer was unresponsive and overpriced.
Field service is another pain point. A Nevada-based mechanic reported two-week delays for service calls due to understaffing. The shortage of qualified technicians is a nationwide issue, exacerbated by aging workforces and a lack of apprenticeship programs. Dealers often fail to invest in training, preferring to poach experienced mechanics rather than develop new talent. This short-term thinking leads to bottlenecks and customer frustration.
The Apprenticeship Gap
The decline of farm and ranch populations has contributed to a skills vacuum in the trades. Many of today’s top mechanics and operators grew up fixing equipment with their parents. Without that early exposure, it’s difficult to train young workers from scratch. One contractor shared a story about mentoring a 17-year-old from a troubled background. Despite his enthusiasm, the teen lacked basic spatial awareness and mechanical intuition—skills that take years to develop.
Dealers could mitigate this by pairing apprentices with veteran technicians, but cost-cutting often prevents such programs. A former oil company mechanic recalled how his helper was more of a distraction than an asset, largely due to poor recruitment and lack of teaching skills. He argued that higher wages would attract better candidates and retain older mechanics longer, but acknowledged that the feedback loop is slow—often taking five years to show results.
Brand Loyalty and Relationship Building
Brand loyalty in the equipment world is often a reflection of dealer relationships, not machine performance. A small contractor in Pennsylvania swore off Case and Komatsu after repeated service failures, despite owning mostly Deere equipment. He praised Caterpillar for quick rentals and accurate billing, noting that even when mistakes occurred, they were resolved within 24 hours.
Another operator emphasized the importance of mutual respect. He never demoed machines unless he was serious about buying and always paid promptly. In return, his dealer treated him like a priority, even though he wasn’t a high-volume buyer. This kind of relationship—built on trust and professionalism—is increasingly rare in an industry dominated by impersonal corporate structures.
The Rise and Fall of Dealerships
Not all dealers survive the transition to big business. One Canadian dealership that carried Kubota and a domestic skid steer brand collapsed after mismanaging growth. Initially praised for its customer service, the company began cutting corners once profits rolled in. Employees were docked for coffee breaks, and many never received their final paychecks. The owner’s obsession with cost control ultimately drove away both staff and customers.
This cautionary tale underscores the importance of ethical management and long-term thinking. Dealers that prioritize short-term margins over customer relationships often find themselves outpaced by competitors who invest in service and support.
Solutions and Recommendations
To improve dealer-customer dynamics, several strategies can be adopted:
Conclusion
The heavy equipment industry thrives on relationships. While machines may be built by global giants, the success of a dealership depends on its ability to serve the people who operate them. Small contractors are the backbone of the market, and ignoring them is a costly mistake. By fostering trust, investing in talent, and treating every customer with respect, dealers can build loyalty that lasts far longer than any warranty.
In the heavy equipment industry, small and mid-sized contractors often find themselves sidelined by dealer networks that prioritize large corporate clients. While big buyers may represent fewer transactions, they command bulk orders and long-term contracts that dealers chase aggressively. This imbalance leaves smaller operators—who collectively make up the majority of the customer base—feeling neglected.
A former Deere and Caterpillar dealership employee recalled a company-wide meeting where the focus was on appeasing major accounts. Yet, when year-end revenue reports came in, the largest contributor wasn’t a single corporate client—it was cash sales from hundreds of small customers. These operators typically pay upfront, require minimal discounts, and consume fewer resources. Despite this, they rarely receive the same level of attention or support.
Dealer Culture and Human Factors
The core issue isn’t always the brand—it’s the people and the culture behind the dealership. Some dealers foster a responsive, customer-first environment, while others are bogged down by bureaucracy and poor communication. A civil engineer in New York noted that his local Caterpillar dealer, despite being the largest in the region, treated him with respect and urgency, even though he was a small buyer. Meanwhile, other brands like Bobcat and Kubota failed to return calls or follow up on quotes.
Responsiveness often hinges on individual employees. A motivated parts manager or service technician can make or break a customer’s experience. Unfortunately, high turnover and corporate consolidation have eroded this personal touch. One former sales rep described how his dealership was acquired by a larger group, stripping local staff of decision-making power and replacing seasoned professionals with spreadsheet-driven managers who lacked industry experience.
Parts Supply and Service Delays
Caterpillar consistently ranks high in parts availability and logistics. Their global distribution network ensures that even remote dealers can access components quickly. This reliability is a major advantage, especially when downtime costs thousands per day. In contrast, other brands struggle with inventory gaps and inflated pricing. A contractor in Oklahoma noted that Komatsu parts were “proudly priced,” while Volvo’s local dealer was unresponsive and overpriced.
Field service is another pain point. A Nevada-based mechanic reported two-week delays for service calls due to understaffing. The shortage of qualified technicians is a nationwide issue, exacerbated by aging workforces and a lack of apprenticeship programs. Dealers often fail to invest in training, preferring to poach experienced mechanics rather than develop new talent. This short-term thinking leads to bottlenecks and customer frustration.
The Apprenticeship Gap
The decline of farm and ranch populations has contributed to a skills vacuum in the trades. Many of today’s top mechanics and operators grew up fixing equipment with their parents. Without that early exposure, it’s difficult to train young workers from scratch. One contractor shared a story about mentoring a 17-year-old from a troubled background. Despite his enthusiasm, the teen lacked basic spatial awareness and mechanical intuition—skills that take years to develop.
Dealers could mitigate this by pairing apprentices with veteran technicians, but cost-cutting often prevents such programs. A former oil company mechanic recalled how his helper was more of a distraction than an asset, largely due to poor recruitment and lack of teaching skills. He argued that higher wages would attract better candidates and retain older mechanics longer, but acknowledged that the feedback loop is slow—often taking five years to show results.
Brand Loyalty and Relationship Building
Brand loyalty in the equipment world is often a reflection of dealer relationships, not machine performance. A small contractor in Pennsylvania swore off Case and Komatsu after repeated service failures, despite owning mostly Deere equipment. He praised Caterpillar for quick rentals and accurate billing, noting that even when mistakes occurred, they were resolved within 24 hours.
Another operator emphasized the importance of mutual respect. He never demoed machines unless he was serious about buying and always paid promptly. In return, his dealer treated him like a priority, even though he wasn’t a high-volume buyer. This kind of relationship—built on trust and professionalism—is increasingly rare in an industry dominated by impersonal corporate structures.
The Rise and Fall of Dealerships
Not all dealers survive the transition to big business. One Canadian dealership that carried Kubota and a domestic skid steer brand collapsed after mismanaging growth. Initially praised for its customer service, the company began cutting corners once profits rolled in. Employees were docked for coffee breaks, and many never received their final paychecks. The owner’s obsession with cost control ultimately drove away both staff and customers.
This cautionary tale underscores the importance of ethical management and long-term thinking. Dealers that prioritize short-term margins over customer relationships often find themselves outpaced by competitors who invest in service and support.
Solutions and Recommendations
To improve dealer-customer dynamics, several strategies can be adopted:
- Empower Local Staff
Give sales reps and service managers authority to make decisions without waiting for corporate approval.
- Invest in Apprenticeships
Pair young recruits with experienced technicians and offer competitive wages to attract talent.
- Prioritize Small Customers
Recognize that small contractors represent a stable revenue stream and deserve consistent support.
- Streamline Communication
Implement CRM systems that track customer interactions and ensure timely follow-ups.
- Offer Flexible Parts Options
Allow use of aftermarket components when appropriate to reduce costs for customers.
- Build Relationships, Not Transactions
Encourage staff to engage with customers beyond sales—check-ins, site visits, and honest advice go a long way.
Conclusion
The heavy equipment industry thrives on relationships. While machines may be built by global giants, the success of a dealership depends on its ability to serve the people who operate them. Small contractors are the backbone of the market, and ignoring them is a costly mistake. By fostering trust, investing in talent, and treating every customer with respect, dealers can build loyalty that lasts far longer than any warranty.
