Construction Machinery Manufacturing
Competitive Landscape
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.
Opportunities
Aging Infrastructure in the US - The US government has acknowledged the aging of the nation's highway infrastructure and the need to repair and improve roads, bridges, and dams. Although the...
Business Challenges
High Dependence on Cyclical Construction Industry - Demand for construction equipment is even more volatile than demand in the highly variable and cyclical construction industry. Machinery production expands rapidly when construction activity...