8 Things We Learned About Europe’s Equipment Market from Yanmar CE EMEA President Jon Lopez

Jon Lopez stepped into the role of president of Yanmar Compact Equipment EMEA in November 2024. His first major market update offers a grounded look at where Europe stands today and where it is headed next. Now, I know this is a North American publication, but it’s always good to have a handle of what Europe’s doing and thinking, So, here are 10 key lessons from his latest report.

1. Europe Is Past the Pandemic Demand Spike

Europe’s compact equipment market no longer operates at pandemic-era levels. Sound familiar? Demand surged in 2021 and 2022 as infrastructure and construction spending jumped. That surge pushed production to historic highs. Those conditions no longer exist. The market has returned to a more normalized pace. Sad trombone.

2. Manufacturing Footprints Are Being Rationalized

European OEMs are rethinking where equipment gets built, streamlining the process. Yanmar CE will consolidate wheel loader production in Saint-Dizier, France. The company plans to close its Crailsheim, Germany, facility by the end of 2025. This move reflects a broader regional trend.

3. Europe Remains a Long-Term Growth Market

Despite near-term softness, Lopez still sees expansion ahead. Urban density, infrastructure renewal and emissions regulations support compact equipment demand. Those drivers remain intact across Europe, the Middle East and Africa. Growth now favors patience and preparation.

4. Agility Beats Scale in the Current Cycle

Lopez repeatedly stresses flexibility. Manufacturers must respond faster to dealer needs and customer shifts. Leaner operations allow quicker adjustments without excess inventory. Speed now comes from structure, not size.

5. Electrification Is Moving from Niche to Expectation

Electric compact equipment no longer sits on the sidelines. Yanmar CE already offers three fully electric machines in Europe. More models remain in development. Regulation and urban work zones continue to accelerate adoption.

6. Telematics Is Becoming Standard Equipment

Fleet visibility now drives uptime and utilization. European customers increasingly expect data access. Telematics helps track usage, service intervals and machine health. Connectivity now supports productivity, not just diagnostics.

7. Safety Drives Technology Investment

Lopez places safety ahead of innovation hype. Electrification, automation and data tools all support safer operation. European buyers demand machines that reduce risk and operator strain. Technology must solve real jobsite problems.

8. Dealer Strength Shapes Market Performance

Yanmar CE leans heavily on its regional dealer network. Local expertise matters across Europe’s fragmented markets. Strong dealers bridge the gap between global manufacturing and local regulations. OEM success now depends on dealer capability.

The Big Picture for Compact Equipment in Europe

Europe’s compact equipment market is not shrinking. It is recalibrating. Manufacturers face tighter margins, stricter rules and more selective buyers. If you liked this article, read how Yanmar CE North America’s president sees the our compact equipment market evolving.

Keith Gribbins is publisher of Compact Equipment.

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