Photo courtesy of Southwest JCB
A focus on service capabilities coupled with a knowledge of these unique western markets has resulted in tremendous growth for the dealership over the past two years.
When Southwest JCB, a single location dealer in Las Vegas, purchased ProCon JCB and its three locations in Arizona, Colorado and New Mexico, it created a massive challenge with incredible upside potential.
A focus on service capabilities coupled with a knowledge of these unique western markets has resulted in tremendous growth for the dealership over the past two years, according to Nic DiPaolo, Southwest's general manager.
The company increased its number of technicians three-fold and added five new mobile service units, which has contributed to a 362 percent increase in parts and service business over that time, Di Paolo said, and the firm is now recognized as the largest full-service JCB dealer in the western region.
With branch locations in Denver, Phoenix, Las Vegas and Las Cruces, N.M., the geography is massive and the markets diverse, acknowledged DiPaolo.
"We're Westerners, so we are used to travel and miles," he said, "but there are challenges associated with the geography. We have almost 500 units in stock at any time, but often the specific model needed in one market is physically located in another. So, there is a lot of inventory movement, with hundreds of miles from any one branch to another."
Photo courtesy of Southwest JCB
The individual markets are mostly dissimilar, with different industry segments targeted in each location.
"Phoenix and Denver are most similar in terms of size and scope," DiPaolo said, "but even there, the clients are different. Las Cruces is our legacy location, but the smallest market we serve by far. We need to do a lot of things to survive there. Vegas is its own unique model, too. Vegas is actually more similar to Las Cruces than to Phoenix or Denver."
In both Denver and Phoenix, Southwest primarily services the commercial construction segment, either directly with the contractors or through rental houses, where JCB equipment is well represented. In both cities, Southwest has opened significantly larger facilities than existed at the time of purchasing ProCon. Branches sit on five acres in Phoenix and three and a half acres in Commerce City, just north of downtown Denver. Shop space has quadrupled in both facilities.
DiPaolo refered to Las Cruces as the company's legacy branch, where it is heavily involved in servicing municipalities and the federal government. It was the original location for ProCon and the JCB brand has been represented there for a decade. White Sands Missile Range, Holloman Air Force base and a NASA installation are all nearby.
In addition to JCB, Southwest sells and services Dynapac's paving and compaction products in Colorado and Arizona. In both Las Vegas and Las Cruces, they represent Avant loaders. They also are the largest JCB power generation dealer in North America.
According to DiPaolo, there has never been a better time to represent JCB, especially in the Western U.S. With a new plant going online in 2027 in San Antonio, he's excited about what that brings in terms of availability.
"Savannah, Ga., is a long way from any of our markets, and production is limited there. And San Antonio is a much bigger city with larger labor pool from which to draw."
What's Next
With JCB's commitment to the development of a hydrogen combustible engine, DiPaolo sees a bright future with alternative power as well. Electric power is also part of the JCB's strategy going forward, but hydrogen seems to be the focus.
"Hydrogen distribution is an issue here in the states," he said. "But we expect that to work itself out over the next few years."
West Texas beckons, according to Nic, and El Paso has already been targeted for growth.
"We've already hired a sales rep dedicated to the market, along with a fulltime technician," he said. "There will be a branch there at some point, probably as early as 2025," he said.
Southwest JCB currently employs 118 people at its four branches.
About Southwest JCB
Southwest JCB is the construction equipment division of Southwest Material Handling, Inc. Southwest has provided industrial equipment and warehouse racking to Southern California and Nevada since 1989. Their Las Vegas branch first opened over 20 years ago and is proud to be a source for JCB construction equipment and a local provider of construction machine parts and service. Southwest JCB has built their philosophy around a customer-oriented culture year after year and plan to continue that philosophy as a partner of JCB.
Southwest JCB is the authorized JCB dealer offering sales and service to customers in New Mexico, Colorado, Arizona, and West Texas.
Southwest Material Handling is owned by KirtLittle. Nic DiPaolo, who previously owned ProCon JCB, serves as general manager of Southwest JCB.
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