2026 Executive Outlook: Morgan Stallings, Senior Director of Dealer Development & Marketing, Develon
Stallings talks 2026 strategy, market drivers and constraints and future Develon technologies that will be front and center at...
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As construction equipment executives look ahead to 2026, they are navigating a landscape shaped by persistent economic pressures and targeted pockets of strength.
Tariffs, high interest rates and inflation may cause contractors to delay big purchases and increase equipment rentals to reduce near-term risk. At the same time, the data center and energy infrastructure demand tied to the AI boom is fueling growth in many regions throughout the country.
For this series of Q&As, Equipment World tapped more than a dozen construction industry leaders to find out what trends are shaping their strategy in 2026, how they plan to invest in their manufacturing and dealer operations and how the current political climate is impacting their product roadmap – from regulatory changes to supply chain constraints.
Our slate of experts also touched on technology – from telematics to automation – and the next steps in their alternative power transformation.
This year’s participants include:
Morgan Stallings, Senior Director of Dealer Development & Marketing, Develon
Brad Williams, Construction Operations Senior Vice President, Granite Construction
Kyle Fuglesten, Vice President of Construction, Hitachi
Paul Barlow, President, Huddig
Mike Ross, Senior Vice President, HD Hyundai Construction Equipment
Paul Manger, Executive Director of Product Marketing, Kubota
Illmars Nartish, Vice President, Manitou North America
Jeffery Ratliff, Director of Sales & Marketing, and Jeff Stewart, President, Takeuchi
Scott Young, Head of Region North America, Volvo CE
Keep reading to see where Morgan Stallings, Senior Director of Dealer Development & Marketing, Develon, is placing his bets in 2026.
Develon
In general, infrastructure projects continue to be a key focus area and major sector for demand heading into 2026. This is especially true as manufacturing is increasingly being reshored to the United States, creating an immediate need for new facilities and associated infrastructure.
The demand increase is not limited to traditional areas like roadways; it also includes continued buildouts on the energy side of things, as well as the significant infrastructure required for data center growth. These data center projects are supporting the massive capital expenditures being driven by the expansion of artificial intelligence (AI) and technology.
At the end of the day, when these large companies commit to foundational spending, the heavy equipment providers are the direct beneficiaries. We come in on the very front end of that cycle, delivering the machines necessary for the physical infrastructure.
In terms of geographic regions, we expect the Sunbelt to continue demonstrating strong, consistent growth for our industry. Looking north, we have observed some persistent slowness in the Canadian market, but we are hopeful that performance and demand will improve as we move into 2026.
EW: How are customer requests and feedback shaping the types of equipment or attachments you plan to release next year?
We consistently engage with our customers during our product development efforts. This dialogue is essential to gaining a deep understanding of their operations and the trends impacting their business, which in turn informs how we develop machinery to address those challenges.
The most significant trend we are seeing is a continued, strong emphasis on automation within heavy equipment. This push is fundamentally driven by the need to address labor shortages, improve worksite productivity, and enhance job site safety. The specific priority among those three drivers often depends entirely on the customer’s immediate operational needs.
Ultimately, these customer needs and trends have heavily shaped the way we build and innovate our products. This focus on innovation is demonstrated through features like the Transparent Bucket for Develon -7 Series wheel loaders or additional safety features, such as the around view monitor (AVM) camera system.
Beyond automation, we are also observing a trend where customers, particularly those operating heavy excavators, are utilizing the same machine for multiple jobs. For instance, instead of just moving large amounts of earth, they may also need that machine for trenching, pipeline work, or fine grading. This demands a higher level of versatility and finesse from the equipment. The push toward multi-job use is significantly impacting our future development efforts, as we must ensure our machines are set up to handle this diverse range of tasks.
EW: What role will emerging technologies—automation, electrification, AI, telematics, etc.—play in your R&D and product launches?
Our R&D focus at Develon leverages AI for a transformative approach to both productivity and safety, extending from our autonomous “Concept-X2” offering. We showcased these future technologies at CES in January 2024. Here are a few examples:
AI drives systems like X-Agent, a machine-assistance solution that analyzes equipment status, site environment, and work plans to provide optimal operational guidance, which can boost the productivity of new operators by a significant margin.
For safety, AI is integrated into the Smart All-Around View Monitoring and Smart Collision Mitigation systems, using camera and radar sensor fusion to detect objects and people, automatically reducing machine speed or stopping operations to prevent accidents and create safer job sites.
EW: How do tariffs, infrastructure funding and broader political factors factor into your strategic planning for 2026?
When considering political and macroeconomic factors, we focus on two key areas: tariffs and infrastructure spending.
First, on tariffs, it’s important to understand that the situation impacts all original equipment manufacturers (OEMs), including those traditionally based in the United States. This is because every OEM relies on a global network for parts and components. Tariffs, therefore, are a shared challenge that affects the entire supply network. It is also a very fluid situation that continues to evolve, requiring constant strategic attention from all players.
Second, infrastructure spending is absolutely critical, especially as political agendas continue to push for increased domestic manufacturing. Meeting this demand requires significant investment in infrastructure — roads, bridges, and core projects. Furthermore, that investment is necessary to support emerging technology trends like AI, which require massive data center buildouts and reliable energy infrastructure to function.
A fully funded and effectively executed infrastructure bill in 2026 is essential, provided that the capital is channeled into those tangible, foundational projects.
EW: Do you expect supply chain constraints for components, steel or electronics to ease, worsen or remain steady?
We do not personally foresee any supply chain challenges related to the availability of components. While some components are certainly impacted by ongoing global tariffs, which can increase the cost of procurement, the physical supply and flow of those parts is stable, and we do not anticipate any disruptions to production from a supply standpoint.
EW: What’s your outlook on hiring and retaining skilled manufacturing talent in the year ahead?
The overall outlook for manufacturing labor remains challenging, particularly when it comes to finding and retaining skilled workers and those in specific skilled trades professions. This is a consistent issue across the industry, affecting every manufacturer. The demand for roles such as welders on the factory floor or skilled service technicians at our dealerships is consistently high, and we do not anticipate that trend slowing down.
As automation becomes more fully integrated into the manufacturing footprint of these factories, it serves as a method to mitigate some of the inherent risks associated with acquiring traditional, physical manufacturing labor. However, despite these industry-wide trends, to my knowledge, our company is not currently encountering any significant talent issues within our United States operations, including both our two parts distribution centers and our North American Customization Plant (NACUP) in Georgia.
EW: How are you working with your dealer network to ensure availability, service and customer support?
Our approach to ensuring machine availability, service, and customer support for our dealer network is a highly collaborative process. The foundation of this collaboration is rooted in accurate forecasting, where we work hand-in-hand with our dealers to create a robust business plan. This plan incorporates critical data points, including local market conditions, current inventory status, and projected future demand needs for both machines and parts. Furthermore, we have significantly enhanced inventory visibility for our dealers, providing them with detailed insight into the available machines that are physically onsite at our customization facility. This allows them to order with confidence and rapidly fulfill urgent customer requests, directly improving both their service capabilities and overall customer support.
EW: How are evolving emissions regulations and customer sustainability goals influencing your product development?
Develon heavy and compact equipment complies with current North American emissions standards. Should those change, Develon will update its product offering to comply with the Environmental Protection Agency (EPA) requirements for non-road equipment.
EW: Where do you see the biggest competitive pressure coming from—established OEMs, new entrants, or technology companies?
In North America, the biggest competitive pressure is currently coming from established OEMs. The competition among existing OEMs has become fiercer due to the need to find growth, particularly during any slowdowns in the industry. This environment has created a much more competitive landscape across the traditional OEM sector.
While established competitors pose the primary pressure, technology companies are also playing an increasingly important role. They exert influence by expanding their relationships and integration with the existing OEM ecosystem.
EW: Looking beyond the next year, what’s your outlook for the global equipment market over the next 3–5 years?
Looking ahead three to five years, our outlook for the global equipment market is one of strong, sustained demand. This positive perspective is fundamentally driven by the belief that the United States continues to be viewed as the primary global growth area. The U.S. economy is currently positioned for continued expansion across all different sectors, and to sustain this growth and global leadership position, many construction projects must be implemented. Therefore, from a construction equipment outlook, although there have been some minor slowdowns in recent years coming off the COVID era, there is strong future demand. This demand is fueled by continued population increases, which require more housing, and the massive infrastructure projects needed to sustain that growth and support the technology initiatives that now span globally.
Additional thoughts on ConExpo-Con/Agg 2026...
ConExpo 2026 is a highly important event for Develon North America, serving as a vital global stage for us to launch new products and introduce a host of innovations to the market. The event will also mark a definitive three-year anniversary since the Develon name was first announced at ConExpo 2023, serving as an important milestone. This presents a key opportunity for us to focus on and highlight our continued advancements in innovation and technology. We are excited to be in our traditional outdoor booth, which will allow us to showcase new equipment through live demonstrations while specifically highlighting the advanced technology we offer to our customers.
