CONSTRUCTION MACHINERY AND RELATED EQUIPMENT
Construction machinery and related equipment is an important and growing subset of the U.S. machinery manufacturing industry. More than 1,800 companies comprise this sector, and 2011 exports totaled $43.6 billion, a 31 percent increase from 2010 and a 153 percent increase since 2000.1
The construction machinery and related equipment industry includes large multibillion-dollar manufacturers, as well as small and medium enterprises (SMEs) providing secondary and tertiary components for finished goods. These SMEs are often members of the larger manufacturers’ global supply chain. Beyond the larger manufacturers and their SME supply chain participants, there are also numerous smaller manufacturers producing specialty equipment. Although manufacturing productivity efficiency increases have placed downward pressure on employment, the U.S. construction machinery and related equipment industry still accounted for approximately 170,000 jobs as of 2010.
Leading export markets for U.S. construction equipment and related equipment manufacturers in 2011 include Canada, Mexico, Australia, China and Brazil. Immediately behind these top export country destinations are rapidly growing markets in South Africa, Russia and Colombia. Major competitors in the global construction machinery and related equipment markets include Germany, Italy, Japan, South Korea and China.
New construction and infrastructure repair are major growth drivers for the industry. With major new construction and infrastructure projects underway or planned worldwide, demand for construction machinery and equipment will continue to grow as developed countries rebuild infrastructure and emerging markets build new infrastructure to sustain development.
Key Statistics – 2011
(unless otherwise noted)
Exports: $43.6 billion2
Export Growth (2010-11): 31.0 percent3
Direct Employment (2010): 173412004
U.S. Share of Global Market: 6.89 percent5
Major Supply Chains
Construction Machinery - Establishments primarily engaged in manufacturing construction machinery, surface mining machinery, and logging equipment.
Mining Machinery and Equipment Manufacturing - Establishments primarily engaged in manufacturing underground mining machinery and equipment, such as coal breakers, mining cars, core drills, coal cutters, rock drills as well as manufacturing mineral beneficiating machinery and equipment used in surface or underground mines.
Other Engine Equipment Manufacturing - Establishments primarily engaged in manufacturing internal combustion engines (except automotive gasoline and aircraft).
Fluid Power Cylinder and Actuator Manufacturing - Establishments primarily engaged in manufacturing fluid power (i.e., hydraulic and pneumatic) cylinders and actuators.
Fluid Power Pump and Motor Manufacturing - Establishments primarily engaged in manufacturing fluid power (i.e., hydraulic and pneumatic) pumps and motors.
New construction and infrastructure repair are major growth drivers for the industry. With major new construction and infrastructure projects underway or planned worldwide, demand for construction machinery and equipment will continue to grow as developed countries rebuild infrastructure and emerging markets build new infrastructure to sustain development. In addition to centrally planned and funded national infrastructure development plans such as Mexico’s National Infrastructure Program and Colombia’s National Development Plan, supporting infrastructure for events such as the 2014 Winter Olympics in Sochi, Russia and the 2016 Summer Olympics in Rio de Janeiro, Brazil presents strong export growth opportunities for construction machinery and related equipment.
Construction machinery and related equipment manufacturers number in the thousands and range from large, multibillion-dollar globally recognized manufacturers, to SMEs proving components for these manufacturers, to small specialty equipment manufacturers. The majority of manufacturers are SMEs, but there are also many large, public companies and recognized American brands that trade on a global scale. Construction machinery and related equipment is manufactured across the United States, but production is concentrated in the industrial Midwest.
Machinery manufacturing jobs are primarily in highly-skilled, well-compensated trades and professions. Leading employment categories include team assemblers, machinists, welders, tool-and-die makers, and mechanical and other engineers.
Relationship with MAS and ITA
Construction machinery and related equipment manufacturers and the organizations that represent them have been engaged with each of ITA’s operating units for many years, including Manufacturing and Services (MAS), the Commercial Service (CS), Market and Compliance (MAC), and the Import Administration (IA). The MAS Office of Transportation and Machinery covers the majority of machinery manufacturing industry sectors.
Information for Machinery Exporters
U.S. Government Resources for Exporters:
The International Trade Administration:
The Export Import Bank of the United States:
The Small Business Administration: