Wednesday 2 July 2014

Construction & Farm Machinery & Heavy Trucks – a broader focus



The global construction, farm machinery and heavy trucks market experienced some rough times during the recession, but now are recovering in a full scale with boosted performance. This trend is expected to continue until 2017, when it is forecasted that it will decline, even though the market will remain stable. The total revenues for the market were $164 billion in 2012, which was a CAGR of 3.6% for the subsequent years. The Asian market, which is the largest in the world accounted for $98 billion in 2013, while the EU one only for $17.6 billion.
Tractors and other industrial machines was the most lucrative segment, accounting for $22.6 billion revenues, which is 13.8% of the market value. This shows that there is a lot of variety in the offerings from the sector, which is a relief for investors, as the decline in one segment doesn’t mean a decline for the whole industry. Nevertheless, mostly the larger corporations specialize in more than one segment, which is why relying on smaller companies requires a lot of research.
Companies such as Caterpillar Inc. performed very well over the last year, with share prices surging. Overall demand for the market increased, and forecasts are that other leading companies will be the first to grasp benefits from it.

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