LBX Company

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LBX Link-Belt Excavators
Company typeWholly-owned subsidiary
IndustryHeavy equipment
Predecessors
  • Link-Belt Machinery Company (1986–1998)
  • Link-Belt Company (1906–1986)
  • Link-Belt Construction Equipment Company (1880–1906)
Founded1880; 144 years ago (1880) in Belle Plaine, Iowa, US
FounderWilliam Dana Ewart
HeadquartersLexington, Kentucky, US
Key people
Eric Sauvage (President & CEO)
ParentSumitomo Heavy Industries
Websiteen.lbxco.com
This article is about LBX Link-Belt Excavators. For Link-Belt Cranes, see Link-Belt_Cranes.

LBX (Link-Belt Excavators) is an American industrial company that develops and manufactures excavators, forestry equipment and scrap material handlers.[1][2]

Link-Belt is headquartered in Lexington, Kentucky. It is a subsidiary of Japanese conglomerate Sumitomo Heavy Industries.[1]

LBX shares the Link-Belt brand with its sister company, Link-Belt Cranes. The two companies split in 1998. Sumitomo operates them as separate organizations.

History

William Dana Ewart, Iowa Inventor

Invention of Linked-Belt Drive Chain

In 1874, William Dana Ewart sold farm implements in Belle Plaine, Iowa. He invented a new harvester drive-chain which used a square detachable link -- a "linked belt."

"William Ewart recognized that harvesters with continuous chain belt drives made up of square links and flat links would wear unevenly and break in one spot. Once broken, the entire chain belt had to be taken back to the barn for needed repairs, thus delaying all harvesting." [1]

In 1875, Ewart and investors founded the Ewart Manufacturing Company to build and market the new Ewart Detachable Link-Belt drive-chain.

Expansion Into Coal Handling

In the 1880's, Ewart's company expanded from drive-belts into coal handling. To accommodate this, Ewart founded two new companies: Link-Belt Machinery in 1880 to build cranes and Link-Belt Engineering in 1888 for custom development efforts.

An early rail-chassis Link-Belt crane with clamshell loading bucket for coal handling. Note the large middle structure housing a locomotive-type steam engine.

During this period, cranes and excavators shared many similarities. Huge steam shovels and steam cranes operated from railroad chassis. Workers laid rail tracks where the shovel was expected to work, then repositioned as required.

Coaling station constructed by Link-Belt Engineering. New Buffalo, Michigan circa 1891.

Link-Belt Machinery quickly developed a steam-powered crane for wide-gauge rails. It used a clamshell-bucket for coal-handling. As shown in the photo at the right, the crane had a large house-like structure mounted on its rail chassis. The middle house-like structure held a steam engine like those used for locomotives.

Through the turn of the century, Link-Belt expanded its line of steam-powered, heavy-duty coal-handling cranes. The company also expanded into lighter, more versatile rail-based cranes.

As Link-Belt Manufacturing worked with railroads, Ewart recognized an opportunity for custom engineering and construction. To handle this, he founded Link-Belt Engineering in 1888. This company designed and built locomotive coaling stations. The company built facilities for railroads including the New York Central and Hudson, the Philadelphia and Reading, and the Chicago and Western Michigan. (See circa 1894 marketing booklet.)

Speeder excavator, circa 1940. Note gasoline or diesel Caterpillar engine at rear.
Move to Chicago & Consolidation to Single Company

By the early 1900's, Link-Belt had moved well beyond its initial drive-chain origins. To support the growth, Link-Belt relocated from Iowa to Chicago in 1906. The three companies, Ewart Manufacturing, Link-Belt Machinery and Link-Belt Engineering, consolidated into the Link-Belt Company.

1920-1939: Crawler Chassis and Dragline Excavators

The 1900's brought new technologies to cranes and excavators. Continuous-track crawler systems moved the machines off railroad chassis and removed the need for temporary tracks. Dragline excavators expanded the power of crane-shovel systems.

By 1922, Link-Belt expanded into the crawler-mounted crane-shovel excavator market. The company continued building rail-based cranes and material-handling equipment, but the rail-based market continued shrinking.

By the 1930s, Link-Belt focused on crawler-mounted cranes and excavators. Its excavators ranged from 3/4-yd to a 2-1/5-yd capacity.

Link-Belt Speeder Logo

In 1939, Link-Belt purchased Speeder Machinery and its line of smaller excavators. Merging Speeder with Link-Belt's Crane and Shovel Division expanded the crane-shovel excavator line into the smaller capacity 3/8- to 3/4-yard range.

The acquisition also brought Speeder's experience and reputation in wheel-mounted excavators. Speeder had developed the world's first wheel-mounted excavator in 1922.

The merged companies formed the Link-Belt Speeder Corporation, a wholly owned subsidiary of the Link-Belt Company. Link-Belt Speeder moved primary operations from Chicago to Cedar Rapids, Iowa.

Disruptive Innovations: Gasoline Power and Hydraulics

This period (1920-1970) put Link-Belt into business history for managing disruptive innovation. Harvard economist Clayton Christiansen analyzed the mechanical excavator industry to understand why disruptive technology innovations frequently cause well-managed companies to fail. Christiansen tracked excavator companies navigating two key technology changes: moving to gasoline power and switching to hydraulic mechanisms.

1920's: Steam Engines to Gasoline & Diesel Power

The technology transition to gasoline power was less disruptive than the one to hydraulic mechanisms. Clayton identified Link-Belt as one of thirty-two steam shovel manufacturers operating in the early 1920s. These companies faced a radical technological change to gasoline power, changing their products' foundations. "Where steam shovels used steam pressure to power a set of steam engines to extend and retract the cables that actuated their buckets, gasoline shovels used a single engine and a very different system of gearing, clutches, drums, and brakes to wind and unwind the cable." [3]

Most of the largest manufacturers survived this transition, making gasoline power more of a "sustaining innovation." Following gasoline power, 1928 and onward included less-radical transitions to diesel engines and electric motors. Clayton also noted the surviving companies integrated new articulated-boom technology, "which allowed longer reach, bigger buckets, and better down-reaching flexibility." [3]

This disruptive period in excavator history set the background for the children's classic Mike Mulligan and His Steam Shovel, along with the HBO short film based on it.

Marketing Materials for Link-Belt Speed-o-Matic Hydraulic Controls

Post WWII-1970: Cable Actuators to Hydraulic Mechanisms

Early Adoption of Hydraulics

Clayton found Link-Belt was part of much smaller group surviving the transition to hydraulics. Before hydraulic technology, cranes and crane-excavators used cable actuators to control movements. These cables were dangerous when they snapped. Hydraulic systems were safer and simpler.

Link-Belt was an early adopter of hydraulics. It began the switch in 1936, introducing power hydraulic controls the company later branded as "Speed-o-Matic."

1950-1970: Market Shakeout from Disruptive Hydraulic Technology

Hydraulic innovators like Link-Belt drove a market shakeup. Clayton identifies Link-Belt as one of about 30 established cable-actuated excavator companies of the 1950s. By 1970, only four of these companies had survived by transitioning to hydraulics. These four were Link-Belt, Insley, Koehring, and Little Giant. [3]

A few others companies survived by shifting to the upper end of the market, producing dragline excavators for strip mining.[3] This included Marion Steam Shovel, which changed to Marion Power Shovel and focused on dragline systems including ones that helped dig the Panama Canal.

New Major Competitors

Link-Belt faced strong new competition from other hydraulic innovators, which Clayton identifies as Case, John Deere, Drott, Ford, Bamford (JCB), Poclain, International Harvester, Caterpillar, O & K, Demag, Liebherr, Komatsu, and Hitachi.[3]

A number of these entrants came to excavators through the invention of the backhoe. These small-capacity excavators were initially mounted on the back of tractors, either farm or industrial varieties. This opened the excavator market to general contractors.[3]

Toy version of Link-Belt LS-98 excavator. The LS-98 crane and crane-excavator continued in production for 42 years (1954 to 1996).

Link-Belt Speeder succeeded in competing against the new entrants, making the company a showcase for managing disruptive innovation. Link-Belt Speeder's rapid adoption of the new hydraulic technologies let it survive where most other established companies failed.

Worldwide Market Leadership & LS-98

This early adoption of hydraulics launched Link-Belt Speeder to the forefront of the crane and crane-shovel excavator markets worldwide. The 1954 flagship model LS-98 platform offers a key example. The LS-98 is one of the most successful pieces of construction equipment ever built. Production of these cranes and crane-excavators continued for over 42 years (1954 to 1996). Link-Belt built over 7,000 units and LS-98 units are still operating around the world.

FMC Link-Belt Excavator, 1960

In 1965, FMC Corporation purchased Link-Belt Speeder as a subsidiary,[4] later making it the FMC Construction Equipment Group. It dropped the Speeder name and branded products with FMC Link-Belt.

Long-Term Capital Expansion

FMC began an aggressive long-term capital expansion plan for Link-Belt's manufacturing facilities and product lines. For example, FMC tried to leverage Link-Belt's expertise into its fire truck division. Working with Ladder Towers Inc. (LTI), FMC Link-Belt developed aerial ladder trucks. This venture was unsuccessful and shut down in 1990.[5]

Early 1980's Recession & Consolidation to Lexington

The larger expansion ended during the early 1980's recession. FMC consolidated Link-Belt operations to Lexington, Kentucky. This included the 1985 closure of the Cedar Rapids plant, laying off 450 employees who had manufactured excavators and cranes.

LBX Link-Belt Excavator Faciliity, 2000

Japanese conglomerate Sumitomo Heavy Industries now owns the Link-Belt companies. Link-Belt Cranes operates separately from LBX Link-Belt Excavators. Both are wholly-owned subsidiaries based in Lexington, Kentucky.

Sumitomo's involvement with Link-Belt began in 1962. Sumitomo began manufacturing Link-Belt products under license. In 1986, FMC and Sumitomo expanded this relationship by forming a joint venture (JV) named Link-Belt Construction Equipment Company.

The excavator versus cranes separation occurred 1998. The FMC/Sumitomo JV spun off excavator products to a new JV with Case Corporation. The excavator JV became LBX Company LLC, building and selling Link-Belt branded excavators.

Sumitomo later acquired full ownership of both joint ventures. It operates LBX Excavators separately from Link-Belt Cranes.

  • Link-Belt Crane Excavator, 1890
    Link-Belt Crane Excavator, 1890
  • Link-Belt steam shovel crane circa 1890
    Link-Belt steam shovel crane circa 1890
  • Vintage Link-Belt excavator
    Vintage Link-Belt excavator
  • Link-Belt 80 Spin Ace excavator.
    Link-Belt 80 Spin Ace excavator.

See also

References

  1. ^ a b Cite error: The named reference History was invoked but never defined (see the help page).
  2. ^ {{cite web |url=https://en.lbxco.com/company/%7Ctitle=ABOUT ~ Link-Belt Excavators |access-date=2024-07-17}
  3. ^ a b c d e f Christiansen, Clayton (2015). The Innovator's Dilemma. Harvard Business Review Press. pp. Chapter 3.{{cite book}}: CS1 maint: date and year (link)
  4. ^ "Site Description". EPA.
  5. ^ Google Books.
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