Spider Men: Leguan Lifts targets rental market for international expansion

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Leguan Lifts has more than tripled revenues over the past five years due to its clever combination of mechanical engineering and high-end software which has enabled the Finnish manufacturer to create a self-learning spider lift. Managing director Esa Vuorela tells Access International editor Euan Youdale how the company is targeting the rental sector for its international expansion

It’s an exciting time for Finnish spider lift manufacturer Leguan Lifts as its aims to spin a web of authority around this niche segment of the aerial lift market.

Leguan Lifts Esa Vuorela, managing director of Leguan Lifts (left), with Jori Mylläri, vice president of sales and marketing. Photo: Leguan Lifts

The company’s strength, it believes, lies in a combination of mechanical engineering and high-end software development that has resulted in a self-learning spider lift.

As Esa Vuorela, the managing director of Leguan Lifts, explains, “We are not one of the biggest players in the industry and we don’t just try to make standardised equipment. We attempt to create new standards and redefine them in our own way.

“That’s really the core of our philosophy. We want to make our own kind equipment – and that’s what has brought us this far.”

This philosophy has helped set the company on an impressive growth path over the last five years, lifting its revenues from €6 million (US$6.5 million) back then to the more than €20 million (US$21.7 million) forecasted for this year.

This company is now centered around four complementary spider products, the Leguan 135 Neo, 195, 225 and 265 models, with a heavy emphasis on leading-edge technology.

The most recent of the trio is the 26.5m working height Leguan 265, launched at a distributor event at the company’s headquarters in Tampere in February.

The Leguan 265

One of its benefits lies in its intelligent operating system known as the EDX (efficiency-driven experience), which essentially allows the machine to self-learn and adjust itself in real time.

The system is combined with advanced electronic valve technology which ensures that hydraulic flow is distributed precisely between all boom functions, allowing the operator to use multiple boom movements simultaneously and precisely, even at high speeds.

The result is a smooth experience, meaning the machine reacts immediately when the operator moves the joystick, which is particularly important when taking on demanding applications in tree care and construction. For this purpose, the lift combines a low centre of gravity, a rugged track system with unrivalled ground clearance, and an impressive 45% gradability.

Not only that, but the system is self-learning in that sensors measure and cross reference actual movements and adjusts in real time to meet the operator’s needs. It automatically optimises speed and acceleration based on the working area, whether the platform is near the machine or at maximum outreach.

Leguan The new Leguan 265 from Finnish manufacturer Leguan Lifts. Photo: Leguan Lifts

However, speaking at the official launch of the machines, when it comes to growth expectations Vuorela is confident, yet cautious. “We have to be humble because the world is changing. If you have one fixed target and then something happens, like for example the president of the USA takes a different position on something, then that might change things.”

One of the company’s main focuses is the US, since the company re-entered the country in 2021 with a subsidiary Avant USA. Since then, it has become Leguan’s largest market, having taken over from its home market of Finland.

It has helped that the US has opened up to more niche European access products in recent years, with one of those being the spider lift, notably in the tree care sector. “When we entered the US, it really opened the doors for us. If you enter a big market like that and it’s growing at around 20%, the total volume is also growing very fast, and in two years we were able to grow around 50%.”

While Leguan is happy to see growth into further new markets in the future, it is also focusing on existing ones, which have recently expanded to include the UK, France, Germany, Belgium the Netherlands and Australia.

Leguan has also increased sales to the rental sector, which currently accounts for around 30% of customers in some of the company’s core markets.

As Vuorela explains, this is the result of the company now offering a line of products that complement each other and share common components.

“We are just getting into rental. And we couldn’t do it before because we had very different products in the past. But now we have similar machines with the same user interfaces, for example, which makes the equipment rental ready.”

While rental is the aim, Vuorela is also clear that Leguan’s lifts will remain at a premium level. “We want to make a very high-quality machine where we understand all the elements of the product. We don’t outsource the critical areas and have a clear strategy of R&D remaining in-house.”

The way Leguan aims to compete with lower priced rental products is through a lower total cost of ownership and high levels of technical efficiencies. “The productivity is another thing. Customers know that it’s easy to use and fast. For example, the 135 Neo, 195 and 225 can all work from the trailer making them very versatile and efficient,” Vuorela says.

Esa Vuorela

Another advantage comes from Leguan Lifts’ parent company Avant, which has an annual turnover of €300 million and extensive production facilities in its hometown of Ylöjärvi.

Having joined Leguan Lifts in 2021, Vuorela’s remit is to make the most of that strong group backing, to champion growth and product development.

Having spent 17 years at Nokia and then as an independent consultant, Vuorela says he is continually working to make businesses profitable by challenging his teams in terms of product development.

“I am very analytical, and R&D and production driven, but I like to give them that freedom to do things their way,” he says. “There are 16 guys going in the right direction and we need to gradually change direction together.”

As an industrial town, Ylöjärvi and neighbouring city of Tampere offers an array of component suppliers, which feeds into the group’s supply chain.

Yet Vuorela says all critical components are designed in-house and sourced from the best possible providers.

“A clear strategy is that the R&D is in-house. We must understand all the details of the machines - every single thing – so we have not outsourced any of the critical elements.”

Vuorela is ambitious when it comes to future product launches and revenue growth but is prepared to take things step by step.

Leguan Guests take a closer look at the 265 during its live launch. Photo: Leguan Lifts

The next target is to achieve €30 million revenue. “Then maybe we aim at €50 million. But there is not a time scale. We have to be humble and take time to look around and see which direction to steer the boat.”

Leguan will produce 300 units in 2025, Vuorela forecasts. “This year has created a good base line as we now have such a good product family. And from the market we can see that we can double our revenue in some of the countries that we are in.”

The company is also looking to expand its dealership network, where appropriate. Currently, Leguan uses its parent company’s large distribution channels, while branching out on its own in some nations. This dual approach will continue as the company focuses on growth in its existing markets.

“We are looking at some countries in Asia. We are already in Singapore and Australia, and we are looking at southern Europe, but we are concentrating on our core markets where there is huge potential.”

In addition, adds Vuorela, sales in Norway have increased as well as in neighbouring Sweden where spiders are not traditionally used. Much of the penetration into these markets is thanks to Leguan’s focus on continuous distributor product training, marketing co-operation and after-sales support.

An exception to this is the US. “We really need to continue our work there. It is a huge country, and we need to grow our distribution base.”

As far as future products are concerned, there are of course plans, although no details can be shared at present.

Vuorela says the next stage will be prototypes and testing. However, he adds, “We have a lot of work to do but not enough resources to do everything this year.”

Therefore, the company will focus on increasing its research and design capacity, coupled with an expansion of production facilities, which currently stand at 4,000 square meters.

The group has recently acquired a 10,000 square meter industrial building on 13 hectares of land close to its facilities in Tampere.

“Annual capacity is really based on how much we sell. We don’t have a specific target, but we have been increasing capacity by increasing personnel,” Vuorela adds.

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