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
Jan 16, 2025 - Wholesalers Are Hiring
- According to the latest US Bureau of Labor Statistics data, producer prices for machinery, equipment, and supplies merchant wholesalers rose 3.8% in November year over year following a previous flat November-versus-November annual comparison. Employment by construction and mining machinery and equipment merchant wholesalers grew 4.8% in October compared to a year ago to a new high, while average industry wages declined 3.4% over the same period to $34.77per hour, BLS data show.
- The second Trump administration is expected to “significantly prioritize” building more mines, processing facilities, and refineries in the US, in contrast to the Biden administration's focus on international cooperation to reduce US reliance on foreign supply chains for critical minerals, according to Gregory Wischer, founder of critical minerals consultancy Dei Gratia Minerals. Wischer also predicts that the Trump administration will continue and accelerate bipartisan policies strengthening US mineral supply chains. “In particular, I think you can expect the [Trump] administration to focus heavily on domestic onshoring of all parts of the mineral supply chain, especially mineral extraction,” Wischer told Mining Technology (MT) after the election. Trump’s approach will likely entail streamlining the permitting process and imposing tariffs to incentivize domestic mineral production, Wischer adds. Moreover, Trump’s more relaxed approach to environmental regulation is likely to benefit the US mining sector, boosting sales for mining equipment wholesalers.
- 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.
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