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
Nov 8, 2024 - Caterpillar’s Sales Drop Amid Weaker Demand
- Caterpillar’s third-quarter sales declined 4% compared to Q3 2023, according to the company’s most recent quarterly earnings report. The company’s Construction Industries segment saw Q3 2024 sales fall 7% year over year amid weaker demand from dealers and difficult comparisons to the segment’s results in Q3 2023. Among Caterpillar’s geographic market segments, Latin America was the only region to post revenue growth in Q3 2024, with a rise of 12%. The company’s North American sales were down 11%, while the Europe, Africa, and the Middle East segment saw a 15% decline. Revenue in the Asia Pacific region was off by 12%. While Caterpillar’s CEO said the company expects its Construction Industries segment to struggle in the fourth quarter, long-term prospects are positive amid ongoing funding for infrastructure projects through the Infrastructure Investment and Jobs Act.
- North American construction and engineering spending in 2024 is expected to grow by about 5%, according to FMI’s fourth-quarter 2024 North American Engineering and Construction Outlook. With growth of 29%, public safety will lead 2024 nonresidential building construction, followed by manufacturing (21%), amusement and recreation (10%), transportation (5%), and educational (4%). Commercial construction spending is expected to decline 8% in 2024 amid weaker demand for warehousing space. Lodging construction spending is forecast to drop 6%, and stubbornly high office vacancies will continue to weigh on new office construction, which is projected to rise 1% in 2024. Amid moderating interest rates, single-family construction spending is forecast to rise 5% in 2024. A recent jump in new apartment supply is expected to reduce multifamily spending by 4% in 2024. With an increase of 14%, water supply will lead 2024 growth in the infrastructure sector, followed by sewage and waste disposal (9%), power (7%), and highway and street (4%).
- Multifamily developers’ confidence was mixed in the third quarter of 2024, according to the National Association of Home Builders (NAHB) latest Multifamily Market Survey. The Multifamily Production Index (MPI) rose two points in Q3 2024 to 40 compared to the third quarter of 2023. The Multifamily Occupancy Index decreased by seven points to 75 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. Multifamily developers’ headwinds include a tight lending environment, higher borrowing costs, regulations, and land availability. The NAHB forecasts that multifamily construction activity will remain weak for about another year amid a significant volume of projects under construction. Multifamily construction is expected to return to more robust growth near the end of 2025.
- In October, the Department of Transportation (DOT) announced $4.2 billion in grants for infrastructure projects, the latest awards funded through the Infrastructure Investment and Jobs Act. The grants will fund a total of 44 projects. The National Infrastructure Project Assistance (Mega) program is providing $1.7 billion in funding for 11 projects, and the Infrastructure for Rebuilding America (INFRA) will provide $2.5 billion for 33 projects. The DOT grants will fund highway, bridge, port, and other infrastructure projects in several states, and projects in three states (Arizona, Massachusetts, and Rhode Island) received grants from Mega and INFRA.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.