Sunward USA by North American Constructors Journal

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Sunward USA:

Drilling Down On The Details COO Mike Flowers joined Sunward USA of Denton, TX charged with the task of developing a distribution network through dealers for the fledgling original equipment manufacturer.

Written by Kevin Doyle Produced by Stephen Marino

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aving built a presence in the U.S. market for nearly two decades as an exporter of rotary drilling rigs and excavator products, Shanhe-China formally established Shanhe-America, also known as Sunward USA, in February 2019.

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Although previous attempts to enter the U.S. Market yielded mixed results, Chief Operating Officer Mike Flowers joined the Denton, TXbased company in June 2019. He is charged with the task of developing a distribution network through dealers for the fledgling original equipment manufacturer. “My job is pretty much everything right now. I start my day dealing with marketing because that’s what we have to do; we have to let people know what we do and we have to somehow or other brand ourselves pretty quickly to get us out of the typical stereotype of a Chinese company. Then I go into forecasting and then I deal with my territory Sales Managers in two territories right now because our focus is on Texas in the US. Long-term forecast models extend into other regions of the country and, Flowers says, “hopefully when we get to our Year Three we’ll have distribution points coast to coast.” Additionally, the company currently has a 12,000-square-foot facility for

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parts distribution. It owns an adjacent nine-acre lot and plans call for work on a manufacturing facility to begin in 2021. “Our plan is to do light manufacturing at first and eventually have fullblown manufacturing right here in the States. We’re real excited about the opportunities for wheel loaders, skid steers, wheeled excavators and we’re not limited with the amount of scope. In US dollars this company

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over in China is approaching $2bn. It’s a significant company, all automated with robotics. I imagine it’s unlike anything you’ve ever seen and will rival anything you see in the United States. I just got back from there last week and it was a very eye-opening trip for me,” Flowers says.

Getting Noticed As a new company looking to make a splash, there was only one thing to do

– attend March’s ConExpo 2020 Show in Las Vegas, NV. “I don’t think I’ve missed ConExpo since 1977. I’ve always enjoyed ConExpo as a good OEM and dealer meeting. I’ve been out there as a representative of OEMs and I’ve also been out there as a buyer and I’ve always enjoyed that venue and BAUMA in Germany. You have to be seen at those shows so to speak,” Flowers says.

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The company spared no expense in making a good first impression at ConExpo. “Our budget (was) enormous for it. We (had) to be as good or better than the rest. It (was) very incumbent on us to put on a good showing. This is a once in every three years event. We kicked off Sunward USA (in 2019) for a reason and ConExpo is one of those reasons,” Flowers notes. “I think when you look at yourself and you’re new and nobody knows you, there are going to be things that you have to overcome.”

Meeting Challenges Sunward USA covers several categories of equipment, including the excavator category from the very

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smallest to the largest; a wide range of drills, which is how the company made its name in China; and cranes of all sizes that will be brought to the United States, Flowers says, “as soon we have EPA approved engines for those.” Flowers stresses it is a prime directive of the company to help its dealers achieve and maintain profitability. “You have to get involved with them at that level and understand what is going to make equipment move. You can’t just build a good product. There too many other competitive advantages that some of your competitors have, not necessarily just at the OEM level but the dealer level as well. The advantages some of the big OEM dealers have aren’t afforded

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“The sky’s the limit here. We’re going to have the ability to develop programs and positions that haven’t even been thought of today, especially with young people just breaking into the industry.” - COO Mike Flowers

to the smaller guys, so how do we get down into supporting dealers at that level? That’s what I’m talking about,” he elaborates. “How do we make sure they have good return value on their equipment? How do we know if they have financing programs that will rival anything that you see out there in the industry? ROI has to be talked about at the dealer level,” Flowers adds. Vetting suppliers is critically important. “What kind of performance have they had in the past? What kind of acceptance do they have in the industry? What kind of warranty programs do they offer for their products? Do they match your expectations for warranty and serviceability? Do they meet your expectations for selecting good third party vendors? This all vitally important information,” Flowers notes.

Attracting And Training Talent “There’s a real fight out there to get good people. We have to offer the

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Sunward USA | 9 things that are pretty much carte blanche with anybody, benefits and competitive salaries. In addition to that, because our business is so new and because we have a foreign parent we tell our applicants that coming here on the ground floor mean there’s only one way to go and that’s up,” he says. He cites Braden Foster as an example. “He’s fresh out of college and he’s in a very important role for us, marketing this company and him getting in on the ground floor right now is just a unique opportunity. Thrown right into the fire and coming up with our strategy for a show is just a megafeat,” Flowers praises.

He says new hires need to be adaptable, open to constant market changes, have the ability to selfeducate, and “understand that it’s not going to be for the weak of heart.” “There are questions that are going to be unknowns for most newbies that are out there, but they’ve got to be able to answer those correctly,” Flowers says. “Where can my equipment be serviced? How do I get a warranty if I bought this thing in Dallas, TX and wind up in Ft. Lauderdale? We’ve got you covered.”

Looking Forward With expansion plans already on the

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“In US dollars this company over in China is approaching $2bn. It’s a significant company, all automated with robotics. I imagine it’s unlike anything you’ve ever seen and will rival anything you see in the United States. I just got back from there last week and it was a very eye-opening trip for me,” Flowers says.” - COO Mike Flowers board and backed by the resources of its Chinese parent, Sunward USA is just getting started. “The sky’s the limit here. We’re going to have the ability to develop programs and positions that haven’t even been thought of today, especially with young people just breaking into the industry,” Flowers concludes.