| SIC Codes: | 3531 |
| NAICS Codes: | 333120 |
The US construction machinery manufacturing industry consists of about 700 companies that have combined annual revenue of about $30 billion. Major companies include Caterpillar, Hitachi, Komatsu, Terex, and the construction divisions of heavy equipment manufacturers CNH, Deere, and Volvo. The industry is highly concentrated: the 50 largest companies generate about 85 percent of revenue.
Demand is highly dependent on the cyclical construction industry. 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 industry is capital-intensive: annual revenue per worker is about $370,000.
Major products are bulldozers, loaders, backhoes, power cranes, excavators, graders and rollers, crushers, mixers, pavers, concrete pumps, various types of off-road trucks and trailers, and a wide variety of specialized machinery. Such equipment is used for three major activities: earthmoving, paving, and lifting.
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