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
Jul 8, 2024 - Construction Spending Flat
- The total value of construction put in place decreased by 0.1% in May 2024 compared to the prior month, according to the US Census Bureau. Spending for nonresidential projects in May declined 0.1% from April, and residential spending fell by 0.2%. Within the nonresidential segment, spending growth was led by a 2.2% increase in sewage and waste disposal projects, followed by manufacturing (+1.3%), transportation (+0.9%), and communication (+0.7%). In commenting on May construction spending, Associated Builders and Contractors (ABC) Chief Economist Anirban Basu said, “Nonresidential construction spending has fallen for two consecutive months yet remains just 0.2% below the all-time high achieved in March 2024. Much of that progress is attributable to ongoing infrastructure investments, which spurred a sizable 0.4% increase in publicly funded nonresidential spending in May.”
- Demand for building design services slipped in May from the prior month, as architectural billings remain soft, according to a June report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) fell to 42.4 in May from April’s reading of 48.3. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries fell to 52.1 in May compared to 54.8 in April, and the index for the value of new design contracts decreased from 49.2 to 45.6. The AIA’s Chief Economist, Kermit Baker said, "The decline in the May ABI score continues a year and a half of weakness in design billings at US architecture firms. However, firms only reported modest declines over the first half of this period. Over the past nine months, volatility has increased, and scores have softened more significantly, with the May score the weakest reported since the end of the pandemic recession."
- Midway through the five-year spending plan under the Infrastructure Investment and Jobs Act (IIJA), only about 38% of the funding has been announced, according to Construction Dive. So far, of the $1.2 trillion in spending authorized by the IIJA, about $454 billion in project spending has been announced. Of spending announced to date, bridges and roads have accounted for the largest share, followed by rail, broadband, power, and water, according to CNBC analysis of data released by the White House. However, some industry insiders suggest more spending is required to upgrade and repair the US’s aging infrastructure. In a recent report, the American Society of Civil Engineers (ASCE) gave US infrastructure the grade of “C minus” and rated US roads, bridges, airports, and water systems as being in “poor” to “mediocre” condition.
- US manufacturers continue to invest in automation to improve production efficiency and alleviate a worker shortage amid a tight labor market, according to a new preliminary report by the International Federation of Robotics. While the automotive sector leads manufacturing industries in industrial robot use, machinery manufacturers are also significant drivers of robot demand. In 2023, the metal and machinery segment – which includes construction machinery manufacturers – robot installations increased 6% over 2022. Customers in the metal and machinery sector account for about 9% of the total US industrial robot market.
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.