As construction equipment executives look ahead to 2026, they are navigating a landscape shaped by persistent economic pressures and targeted pockets of strength.
Tariffs, high interest rates and inflation may cause contractors to delay big purchases and increase equipment rentals to reduce near-term risk. At the same time, the data center and energy infrastructure demand tied to the AI boom is fueling growth in many regions throughout the country.
For this series of Q&As, Equipment World tapped more than a dozen construction industry leaders to find out what trends are shaping their strategy in 2026, how they plan to invest in their manufacturing and dealer operations and how the current political climate is impacting their product roadmap – from regulatory changes to supply chain constraints.
Our slate of experts also touched on technology – from telematics to automation – and the next steps in their alternative power transformation.
This year’s participants include:
Paul Manger, Executive Director of Product Marketing, Kubota
Illmars Nartish, Vice President, Manitou North America
Jeffery Ratliff, Director of Sales & Marketing, and Jeff Stewart, President, Takeuchi
Scott Young, Head of Region North America, Volvo CE
Keep reading to see where Paul Manger, Executive Director of Product Marketing at Kubota Tractor Corporation, is placing his bets in 2026.
Paul Manger serves as executive director of product marketing at Kubota Tractor Corporation.Kubota
We expect continued demand from new housing and general commercial construction across the U.S., with some regions stronger or weaker depending on demographic trends. New housing begets new commercial development to support the new households, and this is strongly dependent upon overall national economic health. In addition, rental market demand for compact equipment appears to be steady.
EW: How are customer requests and feedback shaping the types of equipment or attachments you plan to release next year?
Kubota develops new equipment by listening first and building iteratively. We gather feedback from customers and dealers through field visits, demos, service data, and pre‑ and post‑launch reviews, then turn those insights into targeted updates to continuously improve our equipment offerings.
EW: What role will emerging technologies—automation, electrification, AI, telematics, etc.—play in your R&D and product launches?
We take a practical, customer‑first approach, prioritizing technologies that make our machines easier to own and operate every day. We’re exploring ways to expand telematics and connectivity to support remote diagnostics and preventative maintenance, with the goal of keeping equipment ready when customers need it.
We’re evaluating safety, operator‑assist, and precision features that could help users achieve more consistent, professional‑grade results, and we’re assessing where electrification might make sense as typical use patterns and economics evolve.
EW: How do tariffs, infrastructure funding and broader political factors factor into your strategic planning for 2026?
We certainly still face some real headwinds with lingering supply chain friction and tariff‑related cost uncertainty. For us, the U.S.-implemented tariffs on steel and agricultural equipment impacted mostly tractors and construction units.
We have managed as much of those additional costs through internal efficiencies to ensure the least impact on our customers. We’re closely monitoring market conditions and tariff impacts, and we will continue to evaluate pricing as those effects work through our business.
For 2026, we’re not changing our near‑term plan, but we are prepared to pivot quickly if tailwinds strengthen. We’re steady, optimistic, and ready to move into 2026 committed to ensuring our competitiveness in the market and working closely with our dealers to navigate these changes.
EW: How are you working with your dealer network to ensure availability, service and customer support?
We stay close to our dealers, our field teams, and our inventory systems to ensure we put the right product in the right places. We continue to invest in dealer training for new technologies, diagnostic tools, and our Kubota Genuine Parts ordering systems.
When it comes to service and customer support, our dealers are more equipped than ever with factory‑trained and certified service technicians on staff in every location. Kubota University offers training and access to online technical information as our equipment technology advances.
EW: Where do you see the biggest competitive pressure coming from—established OEMs, new entrants or technology companies?
Technology is developing quickly and non‑linearly. This creates both opportunity and risk to adopt tech that brings customers value and efficiency. All of the above, but biggest competitive pressure comes from other OEMs. We compete by being the brand that’s easiest to own and operate. Our differentiation is reliability, simplicity, dealer support, total cost of ownership, including resale value and uptime.
We are confident that we lead in quality, and we strive to make it simple for customers to choose Kubota as their local dealer of choice for service and support. New entrants may lead on price and financing options. And, when it comes to new entrants, we’re partnering with technology companies wherever it makes sense to deliver clear user value for our customers—such as with telematics and operator‑assist features—we avoid tech for tech's sake.
EW: Looking beyond the next year, what’s your outlook for the global equipment market over the next 3–5 years?
We expect the market to stabilize and the downward volume trend to moderate and return to gradual growth. Demand will center on reliability, versatility, and dealer‑supported ownership value.
Technology adoption should rise where it’s simple and ROI‑positive, such as telematics for uptime, operator‑assist and safety features, and selective electrification as economics improve, especially in compact segments and the rural lifestyle market.
Paul Manger serves as executive director of product marketing at Kubota Tractor Corporation. His prior construction roles include test and development engineer, product manager, regional and national sales manager, product marketing director, division director, and executive director of product marketing. Paul is a member of the Association of Equipment Manufacturers and serves on the board of The AED Foundation.
