Companies in this industry manufacture construction machinery, surface mining machinery, and logging equipment. Major companies include Caterpillar and Terex (both based in the US), Atlas Copco (Sweden), Doosan Infracore (South Korea), Hitachi and Komatsu (both based in Japan), Liebherr Group (Germany), and Sany Heavy Industry (China), along with the construction divisions of heavy equipment manufacturers Deere (US), CNH Industrial (UK), and Volvo (Sweden).
The global construction machinery manufacturing industry is forecast to grow about 4% per year through 2019, reaching a value of about $218 billion, according to the Freedonia Group. Top countries for construction equipment manufacturing include China, Germany, Japan, Sweden, and the US.
The US construction machinery manufacturing industry consists of about 700 companies that have combined annual revenue of about $40 billion.
Demand is highly dependent on construction spending. The profitability of individual companies depends on efficient manufacturing operations, since customers are very sensitive to price. Because of the large capital investment required to produce heavy construction machinery, this segment of the market is served mainly by the large manufacturers. Smaller companies can compete effectively by producing equipment that has specialized applications, or that is relatively simple to make. The US construction machinery manufacturing industry is highly concentrated: the top 50 companies generate about 90% of industry revenue.
US manufacturers compete with their counterparts around the world. Imports, largely from Japan, Mexico, Germany, and Canada account for about 40% of the US market. Exports, primarily...