Construction Machinery Manufacturers
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 687 construction machinery manufactures in the US produce a wide range of products, but common types include backhoes, excavators, loaders, concrete mixers, dredging equipment, jack hammers, cranes, augers and drills, pile drivers, and paving machines, as well as attachments and replacement parts. Key customers include construction machinery dealers and rental firms, construction companies, farms, government, waste and recycling firms, and landscapers.
Competition from Used Equipment
Construction equipment manufacturers compete for sales against used equipment.
Dependence on Economy and Construction Activity
Construction machinery sales tend to shrink during economic downturns when building slows and during periods of high interest rates that make financing high-ticket items less favorable.
Industry size & Structure
A typical construction machinery manufacturer operates out of a single location, employs 108 workers, and generates about $51 million annually.
- The construction machinery manufacturing industry consists of about 687 companies that employ 74,500 workers and generate $35 billion annually.
- Customer industries include construction machinery dealers and rental firms, construction firms, farms, landscaping companies, government, waste and recycling operations, and home improvement stores.
- The industry is highly concentrated with the eight largest companies representing 62% of industry revenue.
- Large companies include Caterpillar, Case, John Deere Construction, Doosan, Hitachi, Hyundai, Kubota, and Volvo Construction. Firms also produce equipment used in agriculture, forestry, mining, and drilling.
Industry Forecast
Construction Machinery Manufacturers Industry Growth
Recent Developments
Mar 7, 2025 - Uncertainty Clouds Machinery Outlook
- The eventual impact of tariffs and a continued shortage of skilled workers in the construction sector have created uncertainty for equipment manufacturers, according to industry insiders speaking to Equipment Today. Construction machinery inventories became overstocked in 2024 amid softer demand, which may affect production plans for some OEMs. New tariffs on steel and aluminum could drive up equipment manufacturing costs. Tariffs may also increase the operating costs for construction firms. Due to rising input prices, some construction projects could be delayed or canceled as they become too costly, which could put downward pressure on equipment demand. Given the uncertainties in the construction sector, some contractors may opt to lease or rent equipment rather than buy until market conditions improve.
- In February, the Trump administration announced a 25% tariff on all US imports of steel and aluminum, a move that some in the construction and manufacturing sectors worry could increase their costs and reduce their margins. The tariffs, which go into effect March 12, 2025, aim to level the playing field amid what the administration alleges is unfair dumping of low-cost steel imports on the US market. Officials in Mexico and Canada called the tariffs unjustified, and in a statement the European Union’s president said the tariffs would, “trigger firm and proportionate counter measures.”
- The total value of nonresidential building construction starts decreased 18% in January 2025 from December, according to Dodge Construction Network. Commercial starts fell 41% amid weak office and hotel construction starts. An uptick in healthcare and recreational projects helped drive a 4% rise in institutional starts, while manufacturing starts were down 16%. January’s nonresidential building starts were off by 22% compared to a year earlier. Dodge’s associate director of forecasting Sarah Martin said, “After robust data center starts in November and December, total office starts fell back in January to more historically typical levels and drove a sizable piece of the month-to-month decline. However, most nonresidential sectors saw weakness over the month. Ongoing labor shortages and high material costs will continue to pose risks to the sector, along with concerns over tariffs and stricter immigration enforcement. Projects are likely to continue moving through the planning queue slowly, until the Federal Reserve resumes cutting rates in the back half of the year.”
- US equipment rental revenue, which includes the construction/industrial and general tool market segments, is expected to rise in 2025 but at a slower pace, according to a recent forecast by the American Rental Association (ARA). After posting revenue of $78.2 billion in 2024, equipment rental revenue is expected to increase by 5.7% in 2025 and reach $82.6 billion. However, revenue growth is forecast to slow somewhat amid slower infrastructure and manufacturing spending as funding from the Infrastructure Investment and Jobs Act, the CHIPS Act, and the Inflation Reduction Act has peaked and begins to wind down. A bright spot is the general tool rental segment, which should see steady demand from improvements in the automotive and aerospace industries and gradual gains in housing, especially in the remodeling market. Equipment rental activity is a demand indicator for construction machinery manufacturers.
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