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
Oct 15, 2024 - Stricter Emissions Limits
- Construction fleets will face stricter exhaust emission limits in coming years, presenting compliance challenges for fleet managers, Construction Equipment magazine reports. The new regulations – published by federal and state regulators and due to take effect starting in 2027 and tightening in 2030 – are aimed at further reducing nitrogen oxide (NOx) emissions that form smog. Stricter limits will increase truck acquisition costs and could require significant and expensive changes in the types of equipment that construction equipment managers buy, maintain, and operate. The American Trucking Associations and other industry groups are challenging the new rules saying they’re too expensive and will drive smaller fleets out of business. Members of Congress have introduced legislation to block the new regulations. According to industry estimates, more than half of all heavy trucks in use today are over 10 years old and diesel trucks lack pollution controls used in modern trucks.
- According to the latest US Bureau of Labor Statistics data, producer prices for machinery, equipment, and supplies merchant wholesalers dipped 0.6% in July compared to a year ago after rising 6.1% in the previous July-versus-July annual comparison. Following a steep and steady climb that began in mid-2021 and peaked in early 2023, industry producer price increases have slowed. Employment by construction and mining machinery and equipment merchant wholesalers grew 5.5% year over year in July, while average industry wages rose 2% over the same period to $35.00 per hour, BLS data show.
- Congress has taken an important step toward permitting reform by voting to approve the Energy Permitting Reform Act of 2024, Minerals Make Life (MML) reports. The bipartisan legislation, which passed out of the Senate Energy and Natural Resources Committee in July, would accelerate the permitting process for critical energy and mineral mining projects of all types in the US. Notably, MML cited a recent report from S&P Global, which found that, on average, it takes 29 years for a US mineral mine to be developed – the second longest lead time in the world (behind Zambia). The production uncertainties and challenges mining operators face under the current outdated and complex system contribute to lower mining investments in the United States. If enacted, the bill would accelerate domestic mine development, spur mining equipment sales, and reduce US reliance on foreign sources, notably China, for critical metals and rare earth minerals.
- Construction equipment dealers' service departments are facing a skilled labor shortage, the Iowa-Nebraska Equipment Dealers Association (INEDA) reported in July. Reasons for the shortage include an aging workforce creating a significant gap in experienced labor, fewer young people entering trade professions, and the cyclical nature of the construction equipment industry. Also, the persistent perception that technician jobs are low-paying and physically demanding is deterring potential workers from pursuing careers in the field, according to INEDA. As a result, dealers are challenged by service delays in equipment maintenance and repair, which affects overall project timelines and customer satisfaction, and rising labor costs as they compete for the smaller pool of qualified technicians. An inexperienced workforce can compromise the quality of workmanship, leading to safety issues and potential rework costs, while hindering the industry's ability to innovate and adopt new technologies.
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