INTERVIEW: Tadano CEO Toshiaki Ujiie on global growth, green innovation, and future goals

Much has been accomplished in the five years since Toshiaki Ujiie joined Tadano, and his prioritised “to do” list is perpetual. Beyond targeted product development in its crane product line, streamlining the manufacturing process at the German crane factories and advancing decarbonisation/green solutions, are top initiatives.

Tadano president and CEO Toshiaki Ujiie

Ujiie is also managing Tadano’s aggressive expansion into new markets. Over the span of 12 months, Tadano has acquired or announced its intention to acquire three companies. Nagano Industry, which produces self-propelled crawler aerial work platforms, became a subsidiary of Tadano in January of 2024. Tadano is in the process of acquiring boom truck and articulating crane maker Manitex International. That deal is set to close in early 2025. In early November 2024, Tadano announced it will acquire the transportation system business of IHI Transport Machinery Co., Ltd., a consolidated subsidiary of IHI Corporation, to include jib climbing cranes, port and large offshore cranes, wind power cranes, and bulk handling systems.

Ujiie joined Tadano about the time the company acquired the Demag brand from Terex. At that time, Koichi Tadano was president and CEO, and his quest was to transform Tadano into the world’s largest crane manufacturer. He knew that Ujiie had the vision and the experience to lead this endeavor. Two years later, in April 2021, Ujiie was named successor to Tadano, who has retired, but remains active on the board of directors of the company.

In his three-plus years as president and CEO, Ujiie has led the company with a keen focus on profitability and rationalisation. Due to global Covid-19 pandemic and the economic challenges caused by it, Ujiie was tasked with managing the company through tough economic times.

The company’s most important goal was the One Tadano strategy, which involved forming a global alliance between manufacturing facilities in Japan, Germany and the United States to better serve its customers. While that process has been completed, there are still challenges, specifically involving the Germany manufacturing facilities. Strategies are in place to make those operations more efficient and profitable, he said.

This year Tadano produced its Mid-Term Management Plan that takes the company through 2026, what it terms “a new era.” Back in July of this year, I had the opportunity to sit down with Ujiie at the company’s state-of-the-art Kozai Plant in Takamatsu, Japan. When we talked the first time, the USA presidential election had not been decided.

Since then, we have asked for a few updates to the interview, in light of so many new developments. As always, Ujiie is keenly aware of the global crane market, and he is excited to talk about the progress being made at Tadano around the world. What is notable about Ujiie is that he is personable, genuine and affable with the full Tadano team. He is also good natured and optimistic.

In a nutshell, how do you describe Tadano’s near-term performance?

“The company’s performance is good. Currently, our performance is highly related to the U.S. economy. We [were] expecting uncertainty in the States until November, but we are not pessimistic. Typically, before or during a presidential election, the USA market gets nervous. But it usually rebounds afterward. The economic situation is hard to predict, but the USA market is one of the most important markets for Tadano. Even if there’s a short-term downturn, it always comes back. We are focusing on developing cranes suited for the USA market, as well as for Japan, Germany and around the world.

The 2023 financials saw a 57.1 per cent increase in the North American market. But if you look at where that growth came from, much of it was from new customers who had never owned a Tadano crane. Our slogan, “take a closer look at Tadano” has been effective.”

What are the biggest challenges ahead for Tadano globally?

“First, we need to make our German operations more efficient. Exchange rates and interest rates are beyond our control, but we can focus on lowering maintenance costs, reducing downtime, extending product life and increasing residual value. We’ve achieved this in Japan, and now we need to bring that same progress to Germany.

We need to use the same strategy in Germany that we use in Japan. But it’s taking time in some areas. It’s been five years since we took over Demag, but post market integration (PMI) takes time, especially when the culture is totally different.

It would be like if Caterpillar bought John Deere, that would not be an easy merger. In our case, it’s a Japanese company merging with two German companies. Even in the same country, understanding different cultures is challenging. But we know what needs to be done and we are doing this. It’s a blending of two families.”

How do you characterise the markets for your various products/crane classes globally?

“We are working to fulfil the needs of every market, and we still have some supply issues with various products.

As I said, North America has been pretty solid for over a year, even though there was some hesitation because of higher interest rates and the presidential election.

Europe still has some supply challenges, but the market has been steady. We could see things starting to slow, but that is primarily in the all-terrain market.

We have announced that we plan to produce two-axle and three-axle all-terrain cranes in Japan. The size of these ATs is very similar to what we’re producing here. No modifications are needed for our production line. This decision will have a positive impact on both Japan and Germany. It will help the Japanese factory understand German design approaches, and if we find any needed production modifications, they can be sent back to Germany. This will help with unifying the production and culture between the teams and help us to increase production times.

Rough terrain cranes are still our biggest market. Demand is up and down, depending on the market, but still solid. Rental rates were stagnant, but they are coming back.

Truck cranes are relatively new for us. I wish we could produce twice the amount we are producing. The challenge is meeting demand for truck cranes in the USA. This was a very successful launch.

On the crawler side, there’s a lot more opportunity, especially in markets like the USA, Australia and Europe. Tadano is focusing on this segment and is investing in this sector. Safety, quality and efficiency are ultimately what the market wants. I think we will see some of our investment in this area pay off soon.

Prior to 2018, we weren’t in the crawler market at all. Some of our customers have crawler fleets, but it’s a different market. The wind sector is big for crawlers, and there’s a lot of opportunity there. Tadano is heavily investing in solutions that address transportation costs, logistical restrictions, and operating expenses for crawler cranes. The market is very competitive, but there is opportunity.”

One of Tadano’s initiatives is advancing decarbonization/green solutions. What does this involve?

“We have already announced our targets for 2030 and 2050. Our goal is a 25 percent reduction of carbon emissions from business activities, 35 percent from product use, and a 50 percent reduction in industrial waste emissions from business activities.

[In terms of product development,] we launched the 25-ton EVOLT rough terrain crane in Japan last year. We introduced a similar crane with 100 tons capacity in the U.S. at the end of October 2024.

At CONEXPO in 2023, we launched the “e-PACK” device, and we have introduced a hybrid crane in Europe. It is a 70 tonner and it will be followed by a series of hybrid cranes. It’s not like a hybrid car, however. Our hybrid works with a diesel engine for driving, but the upper structure can be powered electrically. The goal is to shut down the diesel engine during crane operation. You can start the diesel engine if you need it.

Another new development is the electrification of the CC 8800 crawler crane. We have converted its diesel engine to electric, and the testing we have completed has been successful.

We are initially talking to a Japanese contractor and European contractors about using the electric CC 8800 at ports for lifting offshore wind components and other similar applications. The CC 8800 has a capacity of 1,600 tons, and it can be used as an onshore port crane.”

How realistic is an electric truck crane or all-terrain crane with a sufficient range on the road?

“Truck cranes are driven on the road, so they need to go farther. That’s why we didn’t choose to electrify truck cranes first. Rough terrain cranes are a better choice for electrification. As I mentioned, on job sites, with excavators, you need to place refueling stations or power sources nearby. But rough terrain cranes can approach the repowering area more easily. In my opinion, rough terrain cranes are the best fit for electrification among construction machinery. But truck cranes and all-terrain cranes are different animals; they need to cover longer distances. That’s why we introduced that concept in our Mid-Term Management Plan—this range can be electrified, and that range should use hydrogen or other technologies based on what’s available today.

Initially, we thought people would choose this crane primarily for its environmental benefits and image. But we’ve received a lot of positive feedback, especially regarding how quiet it is. People didn’t realise how loud hydraulic systems are when the engine isn’t running. This opens up new opportunities for us in noise-sensitive areas. While there are concerns about electric vehicles, especially around charging in extreme temperatures, we’ve done extensive testing in cold and heat chambers. We’re confident in our product.

We’ve spent a lot of time ensuring the crane is ready. Many people associate electric vehicles with states like California, but we’ve also seen interest from places like Florida, North Dakota, and data centers like Google and Disney. These are job sites where emissions-free and low-noise equipment are critical.

I think people are curious, but the roll out will be slower initially. Remember when you first saw a Tesla? You might have thought it wouldn’t work, but now you see Teslas everywhere. The industry is evolving. There are major savings in fuel, maintenance, and other areas, and grants for electrification could further boost the EVOLT. Tadano is in a good position to lead with a well-tested product.

Many construction machinery manufacturers, like us, have already electrified certain products. For instance, the biggest equipment by volume tends to be excavators and dozers, but machines like rough terrain cranes are on wheels, which makes them easier to electrify. Although batteries are still expensive, rough terrain cranes can operate just like their diesel counterparts, providing the same power and movement.

We’ve incorporated battery power for driving, but crane operations remain hydraulically powered. For the operator, there’s no difference between the diesel and electric versions in terms of functionality. But in terms of driving, electric cranes are smoother, much like driving a Tesla. Overall, it’s a better machine than the diesel version, especially with zero CO2 emissions.”

What about other technologies?

“We are actually assessing hydrogen engine technologies. In our Mid-Term Management Plan, we included information about what we foresee for future trends in cranes. For large cranes, batteries aren’t the solution for movement and speed over long distances. While battery power can be used for crane operations, diesel is still necessary for mobility. In the future, we expect hydrogen engines to play a role.

We would expect hydrogen engines will be used in the future. But engines are not our product. We buy engines from those manufacturers.

Through our experience with electrified cranes, like the RT, and also normal diesel engines, we will be ready to use any type of compression engine with different fuel. We can be ready when the industry is ready to use a hydrogen combustion engine.

I think it’s important to make the point of how long it takes to develop these products. The EVOLT was in development for a very long time, and we have tested it for a very long time. The testing of that crane took well over two years.”

How do you characterise the response to the launch of the EVOLT RT into the American market?

“With the numerous advantages this machine provides, we have received highly positive feedback from our customers in North America. They are enthusiastic about its capabilities, particularly the EVOLT’s ability to deliver significant annual operational cost savings. Additionally, customers appreciate its quiet operation, which allows them to work through the night in areas where this would typically be restricted. Furthermore, they value the machine’s environmental benefits, as it reduces carbon emissions by 49,000 pounds.”

What does the Nagano acquisition mean for Tadano?

“We are concentrating our AWPs in Japan, mainly those that are mounted on top of a commercial vehicle – a truck mounted AWP. The truck-mounted AWPs are very popular in Japan, in the ship building industries especially.

We see opportunity in this market and we are currently evaluating the markets that we will pursue.”

Tadano has had an interest in Manitex International for several years, and recently announced the full acquisition of the company. What is the status of that acquisition and how do you anticipate integrating boom trucks and articulating cranes into the Tadano product line?

“On Thursday, September 12, 2024, Tadano announced it will acquire Manitex International. Tadano first invested in Manitex in 2018, and we currently hold 14.5 percent of the shares. Tadano’s plan is to acquire all outstanding shares of Manitex we currently do not own. This is in line with our company’s growth strategy of venturing into new areas within the industry. The Manitex acquisition will help us further diversify our product portfolio, while remaining 100 percent committed to lifting equipment. This enables Tadano to support our customers with a broader portfolio of products to forge a deeper relationship and better serve their lifting equipment needs. The acquisition of Manitex is expected to lead to the future expansion of our global business in Truck Loader Cranes and Aerial Work Platforms, and to create a more balanced portfolio structure.

The transaction is anticipated to close in the first quarter of 2025. Due to the nature of this acquisition, we are not able to share any further details at this time.”

Do you envision transforming other Tadano manufacturing facilities into what you have achieved at Kozai?

“We are in the process of renewing the Shido Plant. That plant was opened in 1981, and we haven’t done any major modifications since then, so it’s time for us to update it. Yes, the Kozai Plant is an example of our target.

Remodeling will start at Shido by the end of the year or early next year. One key point I’d like to emphasise is that nearly all of our factories are located near the sea. From this factory, for example, we ship our export machines directly by barge.”

You don’t have to truck them over the road?

“Exactly. You can’t road them in Japan without special permission, which is expensive, time-consuming, and increases CO2 emissions. By using a barge, we can transport four, five or even six units at once. Typically, we bring the machines to Takamatsu Port and transship them onto ferries. Then they go to Kobe, where they are transshipped internationally. By doing this, we avoid the need to hire a driver for each machine, reduce CO2 emissions, and minimize traffic accidents. These are significant benefits.

Our factory here faces the Seto Inland Sea, as does the Shido Plant where you’re visiting tomorrow, and the Sanbonmatsu Testing Site where you’ll see the CC 88. The bending and welding factory also faces the same sea. It’s a key part of our strategy to reduce CO2 emissions by having factories located near the sea.”

When you took this position, you moved to Takamatsu. How do you like living here and what keeps you engaged? 

“I like it here very much. Before, I lived in Tokyo and before that in Atlanta. In Tokyo, I never enjoyed looking out the window because all you could see were your neighbors. Here, I have a house with a view of the sea. I enjoy watching the birds, and I can walk down to a nearby fishing spot.”

Do you actually fish?

“Oh yes, I do. I’m not a professional, but I enjoy it. Some visitors come to fish too, and I don’t mind.

I also like to take care of the garden. We have our main garden, and the neighboring space to our house is farmland, so I bought the land, cleaned it up, and now I maintain it. I planted olive trees. It’s the easiest thing to grow here.

It’s completely different from life in Tokyo. It can be very relaxing.”