Caterpillar faces a competitive construction equipment environment characterized by few global competitors and many local regional and specialty competitors.
Examples of global competitors include CASE (part of CNH Industrial NV), Deere Construction & Forestry (part of Deere & Company), Doosan Infracore, Hitachi Construction Machinery, Hyundai Construction Equipment, Hyundai Doosan Infracore, and Hyundai Construction Equipment (both part of Hyundai Heavy Industries Holdings), JC Bamford Excavators, Kobelco Construction Machinery (part of Kobe Steel, Ltd), Komatsu, Kubota Farm & Industrial Machinery (part of Kubota Corporation) and Volvo Construction Equipment (part of Volvo Group).
Also, as an example of regional and local competitors, its competitors in China also include Guangxi LiuGong Machinery, Longking Holdings, Sany Heavy Industry, XCMG Construction Machinery, Shandong Lingong Construction Machinery, (SDLG, part of Volvo Group), and Shantui Construction Machinery (part of Volvo Group). of Shandong Heavy Industry Group).
Each of these companies has distinct product lines that compete with Caterpillar products, and each has varying degrees of regional focus.
The Construction Industries segment of the company is primarily responsible for supporting customers who use machinery in infrastructure, forestry and building construction.
The majority of machine sales in this segment are to the heavy and general construction, rental, quarry and aggregates, and mining markets.
Also, the nature of customer demand for construction machinery varies around the world.
Clients in developing economies often prioritize purchase price when making their investment decisions, while clients in developed economies generally weigh productivity and other performance criteria that help reduce owning and operating costs during construction. machine life.
To meet the expectations of customers in developing economies, Caterpillar has developed differentiated product offerings aimed at customers in those markets, including SEM brand machines.
Most of Construction Industries’ research and development spending in 2021 was focused on the next generation of construction machines.
With 2021 revenue of $50.971 million, Caterpillar is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.
The company operates primarily through its three main segments: Construction Industries, Resource Industries, and Energy and Transportation, and also provides financing and related services through its Financial Products segment.
Caterpillar is also a leading US exporter.
Through a global network of independent dealers and direct sales of certain products, Caterpillar builds long-term relationships with customers around the world.