International Construction On Demand
The largest manufacturers of heavy construction equipment are
located in the United States, Japan, Germany, France and the
United Kingdom. Whereas the second largest and less competitive
manufacturers of heavy construction equipment are found in
Canada, China, Russia, Latin America, South Korea, Italy,
Belgium and Sweden. Yet this position can shift easily with
today's ever changing market trends and with developing
countries being able to attract heavy construction equipment
manufacturers by offering low material and labor costs.
The global demand of heavy construction equipment is widespread
and on a large-scale of production with almost thirty percent
entering the foreign market every year. This market has been
defined by the major flows among the already developed countries
and by the large-scale importing by the developing countries
with little domestic production.
Next to the United States, Japan has been the dominant net
exporter of heavy construction equipment with Germany and the
United Kingdom following close behind. The United States is also
a major importer of heavy construction equipment, importing in
ample amounts and running a moderate sized trade surplus. In a
developing world and given the variety of construction equipment
prevailing in major geographic regions and even in individual
countries, it's typical for heavy construction equipment to find
some use by private contractors and public agencies as well.
Purchasing used heavy construction equipment is also an option.
Production designs and manufacturing technology for heavy
construction equipment are well established and are making
advances on a regular basis. Tractors, loaders, mixers, cranes
and other heavy construction equipment containing automatic
transmissions, electric controls, engine monitoring systems and
many can now be programmed to repeat the same cycles. Other
advances to enhance operator comfort are air conditioned cabs,
tilting steering wheels and noise reduction devices.
The global heavy construction equipment industry primarily
consists of almost one thousand companies, with smaller
businesses specializing in small equipment, e.g. parts and
attachments. Some of the major manufacturers include:
Caterpillar, Komatsu, Case, Volvo, Deere, New Holland and
Hitachi. All heavy construction equipment manufacturers must
plan strategically and decide whether their company will
continue to expand and stay strong or whether their company
should draw back, perhaps sell out and abandon the industry.
These decisions have many companies choosing to form
partnerships with other companies as an effort to flourish and
continue on, as Caterpillar had fused with New Holland to form
CNH, Inc. The emphasis is on cost-cutting, competitiveness and
down sizing.
There is an increased emphasis on research and development,
making the manufacturers of heavy construction equipment seek a
competitive edge in many ways. With Caterpillar and Komatsu, for
example, being two of the leading producers and spending the
most on research and development by using computer design along
with manufacturer systems. As technology develops, all major
manufacturers of heavy construction equipment will find new and
improved way to test and improve their products to stay one step
ahead in the competition.