A quick look at corporate results for some of the major construction equipment manufacturers paints a somewhat confusing picture of current demand.
Looking at the figures a little more closely provides some of the answers at least.
Caterpillar has been hit hard by the fall in the oil price as this segment has provided the company with extensive sales such as to the tar sands operations of Alberta, Canada, as well as to Russia. And the company has also been affected by a drop in mining activity, another of its major business areas. Liebherr is also a strong player in mining traditionally, and while its sales to this segment have fallen, its business in activities in other areas (such as cranes) has been boosted and the company believes the coming year will see a moderate increase in turnover. Meanwhile both Fayat and Wirtgen have benefited from a resurgence in demand for road machinery across a number of international markets. Wacker Neuson too has been buoyed by a resurgence in demand for its range of smaller machines, while
It is worth noting that according to the German manufacturer’s association, the VDMA, turnover achieved by German manufacturers of construction equipment in 2014 grew by 8%, equalling €8.4 billion in total, and, with this, is higher than was originally expected. This amount is about the same as was reached in 2006.
And some contrasts are apparent in the construction equipment sector. It is not immediately clear why Komatsu for instance should be seeing strong sales at the same time as CNH and Volvo CE have seen business opportunities cooling.
Meanwhile Chinese companies are experiencing tougher times than for many years, although the larger companies such as
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