THE U.S. CONSTRUCTION MACHINERY AND EQUIPMENT MARKET

TABLE OF CONTENTS

INTRODUCTION

• Scope of the Report I
• Definitions and Terms iii
• Sources iii
• Statistical Methodology iv

CHAPTER I EXECUTIVE SUMMARY

• Overview 1
• The Market for Construction Machinery 2
• The Construction Machinery Industry 4
• Foreign Trade Activity 4
• Construction Tractors 5
• Power Cranes, Draglines, and Excavators 6
• Tractor Shovel Loaders 7
• Heavy Construction Equipment 8
• Other Construction Equipment 9

CHAPTER II MARKET ENVIRONMENT

• Overview 13
• Construction Activity 14
  • Overall Trends 14
  • Private Construction Activity 18
    • Residential Building Construction 18
    • Nonresidential Building Construction 19
    • Public Utilities 20
    • All Other Private Construction 20
  • Public Construction Activity 21
  • Housing Starts 25
• Construction Contractors 28
• Interest Rates 31
• Industrial Production 33
• Capacity Utilization 34
• Construction Equipment Demand Factors 35
• Regulatory Environment 38

CHAPTER III INDUSTRY STRUCTURE

• Overview 40
• Marketing Strategies 41
• Barriers to Entry 42
• Channels of Distribution 44
• Construction Equipment, by Manufacturer 45
• Structure of the U.S. Construction Equipment Industry 48
• The Plant Manager's Workbook 63
  • How to Use This Section 63
  • Gathering Your Data 64
  • Developing Your Ratios 65
  • How Does Your Plant Stack Up? 66
• Explanation of Terms 71

CHAPTER IV COMPANY PROFILES

• Introduction 77
• AB Volvo 78
• Astec Industries, Inc. 79
• Bucyrus International 81
• Caterpillar Inc. 82
• CNH Global N.V. 84
• Deere & Company 85
• Gehl Company 87
• Grove Worldwide LLC 89
• Hitachi Construction Machinery Co., Ltd. 90
• Ingersoll-Rand Company 92
• JLG Industries, Inc. 93
• Joy Global Inc. 94
• Komatsu America International Company 96
• Liebherr-Holding GmbH 96
• The Manitowoc Company, Inc. 97
• NACCO Industries, Inc. 99
• NPK Construction Equipment, Inc. 100
• Sumitomo Heavy Industries, Ltd. 101
• Terex Corporation 102
• Textron Inc. 104
• Woods Equipment Company 105

CHAPTER V CONSTRUCTION TRACTORS

• Overview 107
• Wheel Tractors 113
• Crawler Tractors 115

CHAPTER VI POWER CRANES, DRAGLINES, AND EXCAVATORS

• Overview 118
• Excavators 124
• Cranes 127
• Draglines 133
• Other Cranes 135
• Attachments 136

CHAPTER VII TRACTOR SHOVEL LOADERS

• Overview 142
• Skid-Steer Loaders 148
• Wheel Shovel Loaders 151
• Wheel Tractor Chassis 154
• Crawler Loaders 155

CHAPTER VIII HEAVY CONSTRUCTION EQUIPMENT

• Overview 158
• Scrapers 164
• Motor Graders and Light Maintainers 166
• Rollers and Compactors 168
• Off-Highway Equipment 171
• Mounting Machinery 174
• Rough-Terrain Forklifts 176

CHAPTER IX OTHER CONSTRUCTION EQUIPMENT

• Overview 179
• Mixing and Paving Equipment 184
• Ditching and Trenching Equipment 186
• Aerial Work Platforms 188
• Other Equipment 191

CHAPTER X DEVELOPING TECHNOLOGIES 194

CHAPTER XI FOREIGN TRADE ACTIVITY

• Overview 196
• U.S. Balance of Trade and Apparent Consumption 197
• Construction Machinery Imports 200
  • Overall Trends 200
  • By Country of Origin 202
  • By Type 204
    • Construction Tractors 207
    • Cranes, Draglines, Excavators, and Attachments 209
    • Tractor Shovel Loaders 211
    • Heavy Construction Equipment 213
    • Other Construction Equipment 216
• Construction Machinery Exports 218
  • Overall Trends 218
  • By Country of Destination 220
  • By Type 222
    • Construction Tractors 225
    • Cranes, Draglines, Excavators, and Attachments 227
    • Tractor Shovel Loaders 229
    • Heavy Construction Equipment 231
    • Other Construction Equipment 233

LIST OF TABLES

• Table I-1 U.S. Manufacturers' Shipments of Construction Machinery, by Product Category 10
• Table I-2 Product Mix of Dollar Shipments of Construction Machinery 11
• Table II-1 Construction Expenditures Relative to Shipments of Construction Equipment 17
• Table II-2 Construction Expenditures 24
• Table II-3 Privately Owned New Housing Starts in the U.S. 26
• Table II-4 Privately Owned New Housing Starts, by Region 27
• Table II-5 Distribution of Privately Owned New Housing Starts, by Region 27
• Table II-6 Estimated Revenue Breakdowns of Leading Worldwide Construction Contracting Companies 29
• Table II-7 Value of Construction Contracts in the U.S., by Class of Construction 31
• Table II-8 Selected Interest Rates Charged by U.S. Banks 33
• Table II-9 Industrial Production Index for the U.S. Construction Machinery Industry 34
• Table II-10 Capacity Utilization Rates in the U.S. Construction Machinery Industry 35
• Table III-1 Types of Construction Equipment Produced by Leading Manufacturers 46
• Table III-2 Operating Structure of the Construction Equipment Industry 53
• Table III-3 Gross Operating Margin in the Construction Equipment Industry 53
• Table III-4 Value Added by Manufacture in the Construction Equipment Industry 54
• Table III-5 Vertical Integration Index for the Construction Equipment Industry 55
• Table III-6 Employment Structure of the Construction Equipment Industry 56
• Table III-7 Total Labor Costs in the Construction Equipment Industry 56
• Table III-8 Average Hourly Earnings of Production Workers in the Construction Equipment Industry 57
• Table III-9 Cost of Living Index for Production Workers in the Construction Equipment Industry 57
• Table III-10 Labor Productivity in the Construction Equipment Industry 58
• Table III-11 Indexes of Real Labor Productivity in the Construction Equipment Industry 58
• Table III-12 New Capital Expenditures by the Construction Equipment Industry 59
• Table III-13 Plant vs. Equipment Expenditures by the Construction Equipment Industry 59
• Table III-14 Ending Inventories in the Construction Equipment Industry 60
• Table III-15 Total Number of Establishments in the Construction Equipment Industry 60
• Table III-16 Number of Establishments in the Construction Equipment Industry, by State and by Number of Employees 61
• Table V-1 Dollar Shipments of Construction Tractors, by Type 109
• Table V-2 Product Mix of Dollar Shipments of Construction Tractors 110
• Table V-3 Unit Shipments of Construction Tractors, by Type 111
• Table V-4 Shipments of Off-Highway Wheel Tractors 115
• Table V-5 Shipments of Crawler Tractors 117
• Table VI-1 Dollar Shipments of Power Cranes, Draglines, Excavators, and Attachments, by Type 120
• Table VI-2 Product Mix of Dollar Shipments of Power Cranes, Draglines, Excavators, and Attachments 121
• Table VI-3 Unit Shipments of Power Cranes, Draglines, Excavators, and Attachments, by Type 122
• Table VI-4 Shipments of Excavators 127
• Table VI-5 Shipments of Cranes 131
• Table VI-6 Dollar Shipments of Cranes, by Type 132
• Table VI-7 Unit Shipments of Cranes, by Type 133
• Table VI-8 Shipments of Other Cranes 136
• Table VI-9 Shipments of Attachments for Power Cranes, Draglines, and Excavators 139
• Table VI-10 Dollar Shipments of Attachments for Power Cranes, Draglines, and Excavators, by Type 140
• Table VI-11 Unit Shipments of Attachments for Power Cranes, Draglines, and Excavators, by Type 141
• Table VII-1 Dollar Shipments of Tractor Shovel Loaders, by Type 144
• Table VII-2 Product Mix of Dollar Shipments of Tractor Shovel Loaders 145
• Table VII-3 Unit Shipments of Tractor Shovel Loaders, by Type 146
• Table VII-4 Shipments of Skid-Steer Loaders 150
• Table VII-5 Shipments of Wheel Shovel Loaders 153
• Table VII-6 Shipments of Wheel Tractor Chassis 155
• Table VII-7 Shipments of Crawler Loaders 157
• Table VIII-1 Dollar Shipments of Heavy Construction Equipment, by Type 160
• Table VIII-2 Product Mix of Dollar Shipments of Heavy Construction Equipment 161
• Table VIII-3 Unit Shipments of Heavy Construction Equipment, by Type 162
• Table VIII-4 Shipments of Scrapers 166
• Table VIII-5 Shipments of Motor Graders and Light Maintainers 168
• Table VIII-6 Shipments of Rollers and Compactors 171
• Table VIII-7 Shipments of Off-Highway Equipment 174
• Table VIII-8 Shipments of Mounting Machinery 176
• Table VIII-9 Shipments of Rough-Terrain Forklifts 178
• Table IX-1 Dollar Shipments of Other Construction Equipment, by Type 180
• Table IX-2 Product Mix of Dollar Shipments of Other Construction Equipment 181
• Table IX-3 Unit Shipments of Other Construction Equipment, by Type 182
• Table IX-4 Shipments of Mixing and Paving Equipment 186
• Table IX-5 Shipments of Ditchers and Trenchers 188
• Table IX-6 Shipments of Aerial Work Platforms 191
• Table IX-7 Shipments of Other Equipment 193
• Table XI-1 U.S. Apparent Consumption of Construction Machinery 198
• Table XI-2 U.S. Imports of Construction Machinery 202
• Table XI-3 U.S. Dollar Imports of Construction Machinery, by Type 205
• Table XI-4 U.S. Unit Imports of Construction Machinery, by Type 207
• Table XI-5 U.S. Dollar Imports of Construction Tractors, by Type 208
• Table XI-6 U.S. Unit Imports of Construction Tractors, by Type 209
• Table XI-7 U.S. Dollar Imports of Cranes, Draglines, Excavators, and Attachments, by Type 210
• Table XI-8 U.S. Unit Imports of Cranes, Draglines, Excavators, and Attachments, by Type 211
• Table XI-9 U.S. Dollar Imports of Tractor Shovel Loaders, by Type 212
• Table XI-10 U.S. Unit Imports of Tractor Shovel Loaders, by Type 213
• Table XI-11 U.S. Dollar Imports of Heavy Construction Equipment, by Type 215
• Table XI-12 U.S. Unit Imports of Heavy Construction Equipment, by Type 215
• Table XI-13 U.S. Dollar Imports of Other Construction Equipment, by Type 217
• Table XI-14 U.S. Unit Imports of Other Construction Equipment, by Type 217
• Table XI-15 U.S. Exports of Construction Machinery 219
• Table XI-16 U.S. Dollar Exports of Construction Machinery, by Type 223
• Table XI-17 U.S. Unit Exports of Construction Machinery, by Type 225
• Table XI-18 U.S. Dollar Exports of Construction Tractors, by Type 226
• Table XI-19 U.S. Unit Exports of Construction Tractors, by Type 227
• Table XI-20 U.S. Dollar Exports of Cranes, Draglines, Excavators, and Attachments, by Type 228
• Table XI-21 U.S. Unit Exports of Cranes, Draglines, Excavators, and Attachments, by Type 229
• Table XI-22 U.S. Dollar Exports of Tractor Shovel Loaders, by Type 230
• Table XI-23 U.S. Unit Exports of Tractor Shovel Loaders, by Type 231
• Table XI-24 U.S. Dollar Exports of Heavy Construction Equipment, by Type 232
• Table XI-25 U.S. Unit Exports of Heavy Construction Equipment, by Type 233
• Table XI-26 U.S. Dollar Exports of Other Construction Equipment, by Type 234
• Table XI-27 U.S. Unit Exports of Other Construction Equipment, by Type 235

LIST OF FIGURES

• Figure I-1 U.S. Manufacturers' Shipments of Construction Machinery 3
• Figure I-2 Product Mix of Dollar Shipments of Construction Machinery 12
• Figure V-1 Product Mix of Unit Shipments of Construction Tractors 112
• Figure VI-1 Product Mix of Unit Shipments of Power Cranes, Draglines, Excavators, and Attachments 123
• Figure VII-1 Product Mix of Unit Shipments of Tractor Shovel Loaders 147
• Figure VIII-1 Product Mix of Unit Shipments of Heavy Construction Equipment 163
• Figure IX-1 Product Mix of Unit Shipments of Other Construction Equipment 183
• Figure XI-1 U.S. Apparent Consumption of Construction Machinery 199
• Figure XI-2 Leading U.S. Import Sources for Construction Machinery 203
• Figure XI-3 Product Mix of Dollar Imports of Construction Machinery 206
• Figure XI-4 Leading U.S. Export Destinations for Construction Machinery 221
• Figure XI-5 Product Mix of Dollar Exports of Construction Machinery 224