Toro Company revamps its underground construction strategy

Toro company

The Toro Company is rearranging the organizational structure of its underground construction business.

The company plans to combine certain aspects of the Ditch Witch, American Augers and Trencor businesses, all of which were part of the Charles Machine Works acquisition announced by Toro earlier this year. 

The realignment supports a streamlined approach to the marketing, sales and service functions of those businesses to more effectively support end customer needs, according to Toro. 

“We continue to be very excited about the expertise, knowledge and understanding of the underground business that the Charles Machine Works companies bring to our organization,” said Rick Rodier, group vice president of construction businesses at The Toro Company. 

“Throughout the ongoing integration process, we continue to be impressed by their market-leading position, strong product portfolio and best-in-class channel. It is these factors that have influenced our decision to concentrate on the Charles Machine Works’ product portfolio and brands in the underground product category going forward.”

Discontinued Toro Company machines

In a related strategic move, the company plans to wind down its Toro-branded, large horizontal directional drill and riding trencher categories. 

This includes the Toro DD2226 and DD4050 directional drills, as well as the RT600 and RT1200 riding trenchers.

All Toro walk-behind trenchers will still remain a part of the Toro Sitework Systems business.

The change is aligned with the broader integration plan and will allow the company to rationalize its product offering in the underground construction market quickly and efficiently. 

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With the addition of the Charles Machine Works companies to The Toro Company’s brands, there are many opportunities to leverage their strength in the underground market, while maximizing efficiencies and cost benefits. 

Toro will continue to serve the rental and specialty construction markets with the Dingo compact utility loaders, concrete and masonry mixers, compaction equipment and tree and specialty turf products.

Since closing the Charles Machine Works acquisition, integration and the resulting synergies are progressing as planned, according to Toro. 

The strategic initiatives have been put in place to improve efficiencies, while allowing the company to allocate resources to both the Toro and Charles Machine Works brands effectively.