Over the past year, Komatsu has navigated a shifting construction landscape by balancing innovation and training, launching new flagship machines, and advancing smart, safe, and sustainable growth across Australia and the region.
After several years of bustling activity in the construction industry, the Australian sector is entering a new phase, one marked by recalibration, technological maturity, and measured optimism.
For Komatsu, one of the industry’s key machinery suppliers, the current environment represents a challenge and an opportunity.
David Small, Executive General Manager of Komatsu, says the business has come off the peaks of the past three to four years, which were COVID and stimulus inspired.
“The market is definitely down, but it’s down from probably the highest point I’ve seen in 20 years. If you look back historically, we’re still in a very good market,” he says.
Nationally, Small says the picture is not uniform. Queensland and Western Australia remain hubs of activity due to resource-driven projects and major public infrastructure works.
“Queensland, in particular, has been extremely strong for us,” he says. “Western Australia has remained solid, while Victoria and New South Wales are much slower.
“South Australia has been ticking along nicely, with projects like River Torrens to Darlington giving that state real momentum.”
Small says government spending continues to play a stabilising role, but headwinds persist, especially around labour and housing.
“There’s a massive backlog in residential housing, which flows through to infrastructure that supports those developments across roads and civil works,” he says.
“We simply haven’t kept up with the housing demands of the existing population, let alone the additional demand created by immigration.”
For Komatsu, changing market conditions have altered customer behaviour and required careful management of supply and inventory.
“We’re seeing customers who ordered machines earlier now take a little longer to collect them,” says Small.
“Because of this we need to be mindful of what we’re building, how we prioritise production, and where we hold inventory.”
Small says balancing supply across regions is critical.
While some markets have softened, others, particularly cement, aggregate, and renewable energy, remain strong.
“The cement and aggregate side of the business is storming along,” he says.
“That’s directly tied to both public infrastructure and housing. We also see strong demand from renewable projects, especially wind farms in Queensland.”
Post pandemic findings
The pandemic’s disruptions prompted widespread reflection across the construction industry.
Now, several years on, Small says the sector is displaying greater maturity in supply chain management, workforce development, and technological adoption.
“The Australian market has always been an early adopter of technology,” he says.
“There’s now a much greater understanding of smart construction, machine guidance, machine control, and what those tools can do. It’s helping good operators become great, and new operators become highly skilled much faster.”
For Komatsu, this technological shift is integral to its long-term vision. The company’s Smart Construction ecosystem continues to drive digital transformation across job sites nationwide.
By integrating data, sensors, and precision tools, it enables contractors to visualise worksites, enhance accuracy, and maximise productivity.
“It allows people to visualise their job sites and use equipment much more productively,” Small says.
“Customers are able to complete jobs faster and with greater precision. It helps them get the most out of their investment, and it makes their businesses more attractive to employees who want to work with the latest technology.”
This year wrapped
Komatsu’s highlights for 2025 reflect a balance of innovation and human investment.
The company has continued to grow its business while placing strong emphasis on training and career development.
“We want Komatsu to be a place where people can comfortably work, learn, and grow,” Small says.
“Our apprenticeship and graduate programs give people opportunities to build careers not just in Australia, but across New Zealand, New Caledonia, and Papua New Guinea.”
This year also saw the launch of new flagship products, including the PC950 excavator and WA700 wheel loader, alongside the Dash-12 excavator, Komatsu’s latest model.
Each incorporates advanced machine control, efficiency, and safety features aligned with the company’s sustainability and productivity goals.
A standout internal initiative has been Komatsu’s Boots On training event, held in the Hunter Valley.
“We bring a large range of equipment to a live site and spend a week giving our salespeople hands-on operating experience,” Small explains.
“It’s a significant investment, but it means our people can confidently talk to customers because they’ve operated the machines themselves. It builds capability and pride.”
Safety remains at the heart of Komatsu’s innovation strategy. From intelligent machine control that removes workers from high-risk areas to advanced telematics and proximity detection, the company continues to integrate safety by design.
“Machine guidance and our intelligent control systems reduce the need for people outside the cabin, so we’re moving people out of the line of fire,” Small says.
“We’re also introducing proximity alarms that detect people or objects within a certain envelope around the machine. It’s all about enhancing visibility and awareness.”
Small says improved maintenance intervals and reliability further support safe, efficient operations.
“A lot of our customers have safety as a primary focus, and we want our people to be just as safe when they’re on-site.”
For Komatsu, and for the broader construction and infrastructure community the coming years represent a new era, not one of slowdown, but of smart, sustainable growth built on experience, innovation, and resilience.
This article was originally published in the December edition of our magazine. To read the magazine, click here.
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