Construction and Mining Equipment Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 2,633 construction and mining equipment wholesalers in the US distribute specialized machinery, equipment, and related parts generally used in construction, mining (except oil well), and logging activities. Firms may sell or rent new or used equipment and parts. Companies may also provide repair and maintenance services.
Dependence on the Economy
Demand for construction and mining machinery and equipment is dependent on the economy, which is cyclical and impacted by the financial markets.
Fleet Electrification
New emissions standards and the shift away from fossil fuels are driving demand for electric and lower-emission machinery and equipment used in the construction and mining industries.
Industry size & Structure
The average construction and mining equipment wholesaler operates one to two locations, employs about 20 workers, and generates $33 million in annual revenue.
- The construction and mining equipment wholesaling industry includes about 2,630 firms that employ 97,970 workers, and generate $87.3 billion in annual revenue.
- The industry is somewhat concentrated with the 50 largest companies accounting for 61% of industry revenue.
- Wholesalers include independent dealers for major machinery manufacturers, such as Caterpillar, CNH Industrial, Deere & Co., and Komatsu Mining Corp. A dealership group operates multiple retail locations.
- The largest construction dealership groups include Titan Machinery (Case), RDO Equipment (John Deere), Butler Machinery Co. (Caterpillar), Ziegler Inc. (Caterpillar), and Wagner Equipment Co. (Caterpillar).
Industry Forecast
Construction and Mining Equipment Wholesalers Industry Growth
Recent Developments
Dec 16, 2024 - Boosting B2B Sales With AI
- Artificial intelligence can help industrial equipment wholesalers accelerate sales and profitability, according to the National Association of Wholesalers (NAW). A SPARXiQ analysis of sales data shows up to 30% of sales calls have a negative or zero impact on expected net profitability. However, by leveraging AI, B2B sales reps can increase profits by improving their time allocation, productivity, and organic revenue growth. Machine learning (ML) models analyze anonymized buyer data from purchasing platforms to predict supplier share of wallet and trends, customer engagement and loyalty, price sensitivity, and upsell and cross-sell opportunities, providing insights that sellers can use to optimize their efforts. ML-based assessments of supplier position – be it primary, secondary, tertiary, or niche – trained from actual purchasing data, can be applied to a distributor’s own POS data to determine the likely position, health scores, and engagement scores of a wholesale customer.
- Total US construction starts are forecast to grow by 8.5% in 2025, led by growth in residential construction, according to ConstructConnect. After two years of declines, total residential building is expected to grow at a robust 12% rate next year, outpacing nonresidential starts, expected to rise 6.9%. The forecast for residential construction expansion is driven by both single- and multi-family construction as the impact of falling interest rates encourages construction activity. Single-family residential starts are expected to grow 13.1%, while multi-family starts are forecast to rise 9.5%, per ConstructConnect. Overcapacity and high financing costs remain a downside risk for multi-family, given apartment vacancy rates. Total nonresidential building activity includes civil engineering, which is forecast to grow 5.3% in 2025, down from record levels following the pandemic. Investment in power infrastructure is a strategic growth area called out by ConstructConnect.
- According to a November report from the Deloitte Research Center for Energy & Industrials, construction firms have reason for optimism in 2025. Construction investment, driven largely by government spending and expected cuts to interest rates – on the heels of cuts in September and November – may provide relief to the industry over the coming few quarters, creating more favorable conditions for investment in construction equipment. The improving economic climate is likely to influence construction demand across various segments, with falling mortgage rates boosting demand and residential construction activity, while government spending may continue to drive growth in manufacturing and energy, according to the Deloitte report. Also, increasing adoption of artificial intelligence and advanced computing across industries is likely to drive data center construction. Overall, given slowing inflation and a supportive monetary policy, the US construction industry is likely to record moderate growth in the medium term, per the report.
- According to the latest US Bureau of Labor Statistics data, producer prices for machinery, equipment, and supplies merchant wholesalers rose 2% in September year over year to a new high after rising 4.4% in the previous September-versus-September annual comparison. Employment by construction and mining machinery and equipment merchant wholesalers grew 5.7% in September compared to a year ago – matching its July peak – while average industry wages fell 1.2% over the same period to $35.18 per hour, BLS data show.
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