Manitowoc Targets $1B Aftermarket Business as Crane Demand Builds

Manitowoc is shifting toward recurring aftermarket revenue to reduce exposure to volatile new-crane cycles. Aftermarket sales have grown to more than $700 million from roughly $375 million six years ago, with a long-term goal of reaching $1 billion and half of total revenue. Crane demand remains strong, supported by data-center, semiconductor, infrastructure, energy and industrial projects. Orders have been strong for three quarters, backlog exceeds $1 billion, and large crawler cranes are sold out for 2027. The company is expanding branches, field-service staffing and technology while targeting a 12% EBITDA margin. Non-new-machine sales have risen 84% since 2020 and carry gross margins of about 35%.

Manitowoc is continuing to shift its business toward aftermarket products, service and lifting solutions as it seeks to reduce its exposure to the historically volatile new-crane cycle, CEO and President Aaron Ravenscroft said during a company presentation. Ravenscroft said the crane manufacturer has spent the past several years reducing costs, expanding service capabilities and pursuing a more recurring revenue mix. The company has removed $150 million of costs from the business since its transformation began, he said, while building an aftermarket operation that now generates more than $700 million in sales, up from about $375 million roughly six years ago.

Manitowoc said it has sold more than 100,000 machines during the past 20 years, creating an opportunity to grow parts, maintenance, retrofits and field-service revenue. Ravenscroft said crane fleets globally are aging, with some machines 25 to 30 years old, potentially supporting demand for both maintenance and eventual fleet replacements. The company has established a goal for aftermarket sales to account for half of total revenue over time. It previously set an aftermarket target of $750 million and later raised that target to $1 billion, according to Ravenscroft. To support that effort, Manitowoc has expanded its branch network and staffing. The company has 47 branches and expects to reach 50 soon, Ravenscroft said. Recent additions include locations in Denver; Aiken, South Carolina; Kansas City; Baton Rouge; Peru; Chile; and Monterrey, Mexico, as well as sites in Madrid, Paris, Barnsley in the U.K., and Warsaw, Poland. The company is also expanding in Australia, including Brisbane and Melbourne. Manitowoc has added more than 200 field-service technicians organically over the past five years, Ravenscroft said. The company is recruiting technicians with varying levels of experience and training employees from vocational schools and high schools, while using mobile training centers to bring instruction closer to employees, dealers and customers. The company is also broadening its portfolio beyond traditional replacement parts. Ravenscroft cited upgrades such as modernized crane displays, wire rope and rigging products, tower-crane anchorage systems, hydraulic pinning systems and battery products designed to help tower cranes operate when grid access is limited or delayed.

Manitowoc is implementing ServiceMax, a field-service management platform owned by PTC, to improve the tracking of cranes throughout their operating lives and make service information more accessible. Ravenscroft said