When a mid-sized manufacturer survives six decades in a market dominated by corporations like JCB, Caterpillar and Manitou, their strategy is worth examining closely. Italian construction machinery manufacturer Merlo is celebrating its 60th anniversary in 2024 and is honoring company founder Amilcare Merlo with a video tribute. The company's history exemplifies how specialists can assert themselves in fiercely competitive market segments.
From Italian workshop to global telehandler producer
In 1964, Amilcare Merlo founded the company in Cuneo in northern Italy – at a time when telescopic handlers were not yet an established product category. The machines, which combine movable telescopic arms with the mobility of wheel loaders, only developed into an independent segment between wheel loaders and cranes over the following decades. Merlo focused early on this niche and consistently expanded its product portfolio in this area.
The evolution from a small Italian startup to an internationally operating specialist took place through several growth phases. While other manufacturers offered telehandlers as a complement to their broader product ranges, Merlo focused exclusively on this equipment class and the associated applications in agriculture, construction and industry. This specialization enabled the company to build technical expertise in areas such as hydraulic systems, telescopic technology and load management.
Market niche as strategic advantage
The global market for telescopic handlers is dominated by a few major players. JCB from Great Britain is considered the market leader and has significantly shaped the product category. Manitou from France and Caterpillar from the USA have significantly greater resources and global distribution networks. Against this competition, Merlo pursues differentiation through technical specialization and application expertise.
A key difference lies in product philosophy: while large corporations often develop standardized solutions for mass markets, Merlo focuses on specific application fields. These include machines for extreme lifting heights, compact models for confined construction sites, or special designs for agriculture. This strategy allows the Italian manufacturer to remain technologically leading in specific segments without having to compete with volume manufacturers across all areas.
Technological development over six decades
The technical evolution of the telescopic handler industry over the past 60 years is reflected in Merlo's product development. Early models were mechanically simple devices with limited lifting heights and load capacities. Modern telescopic handlers feature electronic load moment limiters, adaptive control systems and increasingly digital interfaces for fleet management and remote diagnostics.
Technology has fundamentally changed, particularly in the area of stabilization systems and precise load control. Hydraulic leveling systems, automatic adaptation to different ground conditions and intelligent safety systems are now standard – developments in which specialized manufacturers like Merlo have played a significant role.
Challenges of the next phase
For the coming years, Merlo also faces topics that are moving the entire construction machinery industry: electrification, digitalization and autonomous systems. Battery-electric drives are technically demanding for telescopic handlers because the machines require high power peaks when lifting and telescoping. Hybrid solutions could represent an intermediate step, but require significant development investments.
Digitalization opens up opportunities for predictive maintenance, optimized deployment planning and improved safety systems. For a specialized mid-sized company, the question arises whether in-house software development is economically viable or whether partnerships with technology providers are the better route.
Family business competing with corporations
The role of the Merlo family in today's company illustrates a typical challenge for mid-sized manufacturers: balancing business continuity with professional management. Many successful family-owned construction machinery companies have established management structures that combine family members with external managers.
The coming years will show whether Merlo's strategy of niche specialization remains viable in a market increasingly characterized by consolidation and technological change. Investments in new drive technologies and digital systems require capital that smaller specialists find harder to raise than diversified corporations. At the same time, focusing on specific applications offers the opportunity to remain technologically leading in selected segments in the future – as Merlo has succeeded in doing over the past 60 years.
