Executive Summary
The construction equipment industry is an industry that is heavily dependent on demand for construction equipment, such as earthmoving equipment, mining equipment, and farming equipment from domestic and international markets. Despite the downturn of the U.S. economy, and its rippling effect on overseas markets, the construction equipment industry still has been growing. Asian markets and European markets have also seen a slowdown in their economy, and therefore slow down in construction products. Emerging markets such as Latin America, Russia and the Middle East have kept this industry alive, keeping export amount high from some of the biggest U.S. construction equipment companies in the industry. Caterpillar exported more than 12 billion dollars worth of machinery in 2007. Caterpillar has also seen a 13% increase in revenue from its construction equipment division alone. Its big competitor, Komatsu Ltd. has also seen a significant increase in revenue (21%) from its construction equipment division. Both of these companies saw most of their revenue increases occur in overseas emerging markets. Exports are really important to the Industry, and trade agreements need to be put in place to ensure the future success of the construction equipment industry, as it is very reliant on overseas trading.
Major Industry Competitors
The world's leading manufacturer of construction equipment is Caterpillar Inc., of Peoria, Illinois, with total revenues in 2007 of 785 million which is a 5 percent increase since 2007. More specifically, the construction and mining products division had over a 13 percent increase since 2005. The substantial growth in revenue can be attributed to its global markets, including: Asia, Latin America, Ireland, and Germany; “Ca ...