South Korean-based HD Construction Equipment, parent company of Hyundai and Develon, will partner Manitou Group of France on a new agreement designed to capture a larger share of the rapidly growing compact construction equipment market.
The deal marks the third announced partnership in 2026 among major construction equipment manufacturers.
Under the “mutual sales partnership,” Hyundai, Develon and Manitou, along with its Gehl brand, will expand their compact equipment lineups on the global market.
Manitou will add equipment engineered and manufactured by Hyundai and Develon to be sold and distributed internationally under the Manitou and Gehl brands, including dealer support and service.
In turn, HD will source compact equipment product lines from Manitou Group and sell them on a global scale under the Hyundai and Develon brands through their dealer networks.
Gehl and Manitou have recently launched next-gen compact track loaders, including the VT360 above.Gehl
Powered byIn the past two years, both Develon and Hyundai have launched their first skid steers and compact track loaders for the U.S. market. The companies also produce an array of mini excavators, which Manitou does not produce.
Manitou, likewise, says it expects a boost in sales from the agreement, of up to 5% in four years. The company manufactures a broad array of Gehl and Manitou skid steers and CTLs, along with compact wheel loaders and compact telehandlers. It also manufactures aerial lifts, but those are not part of the deal.
It has not been announced which specific machines will be part of the agreement for either corporation.
Other OEM Partnerships
So far in 2026, two other similar partnerships have been announced by equipment manufacturers looking for quicker, more efficient ways to boost their market presence.
Agreements announced so far in 2026:
- Hitachi and Yanmar — As Hitachi transitions to a new name and brand, Landcros, it plans to seek partnerships to expand its offerings, including with fellow Japanese OEM Yanmar. In July the companies signed a letter of intent “to begin exploring collaboration in the compact equipment business.” Hitachi is particularly interested in compact track loaders, which it plans to begin introducing next year. After acquiring ASV in 2019, Yanmar has expanded its CTL offerings. Hitachi says it is also working with a partner for articulated dump trucks, with an announcement expected later this year.
- Case CE and Bell Equipment — Case announced in March at ConExpo an agreement with South Africa-based Bell to produce three large motor graders, ranging from 250 to 350 horsepower. Under the agreement, Case will have exclusive distribution across the United States and Canada for the models manufactured at Bell facilities.
Not Unusual
Such agreements are not new, and two signed in the past four years continue to show the fruits of their partnerships:
- In 2022, John Deere signed a deal with Wacker Neuson to produce mini excavators. Last year, Deere released its redesigned 17 and 26 P-tier excavators under the agreement with the German equipment manufacturer.
- And in 2023, Case and New Holland signed a partnership with Tobroco-Giant of The Netherlands to produce their compact and small articulated loaders for North America. Case launched its new SL27 small articulated loader this year, under the deal and now offers seven models. New Holland also offers seven SAL models.
A Growing Market
The compact equipment segment has been the fastest growing among the various categories of construction equipment.
None has been as evident of the growth as compact track loaders, which long ago surpassed its predecessor, wheeled skid steers. Today, CTLs are the top-selling construction machine category in the U.S.
Between May 1, 2025, and April 30, 2026, more than 56,000 new CTLs have been financed for purchase, a 1.2% increase from 2024-2025, while most other categories showed sales declines, according to Fusable’s latest EDA equipment finance data. That compares to 9,990 new skid steers financed from March 1, 2024, to February 28, 2025. (Both EDA and Equipment World are owned by Fusable.)
Right behind CTLs in sales are mini excavators, ranked second in top new-financed sales in the U.S. More than 32,500 new financed mini excavators were sold from June 1, 2025, to May 31, 2026, a 7.7% decrease from the same period last year, according to EDA.
Both HD Construction Equipment and Manitou Group hope their new deal will capture a piece of that growing compact equipment market.
“This partnership is more than just enhancing our product lines; it opens up important new growth opportunities through significant market expansion,” says HD President and CEO Moon Jae-young. “By bringing together our strengths, we will boost the competitiveness of our compact products and enhance our global presence.”
“By combining the industrial excellence and innovative capabilities of two major industry leaders,” adds Manitou Group President and CEO Sylvain Blaise, “this alliance allows us not only to reach a new milestone in product line expansion, but also to deliver enhanced value to our dealer network and customers worldwide.”
