Key Takeaways
- Most companies are reporting strong demand and a positive outlook for the rest of 2021. The U.S. infrastructure bill is expected to support growth over the next few years.
- Rising input costs, such as steel and copper, are increasing manufacturing expenses.
- Supply chain constraints persist, but major manufacturers like Caterpillar say they are manageable.
- Equipment rental company demand is showing signs of recovery.
Global construction demand remains strong, driven by the post-pandemic economic rebound. Many manufacturers believe the industry has favorable tailwinds from government stimulus and long-term infrastructure investments.
While supply chain challenges and rising costs remain concerns, most companies are adapting. Caterpillar, for example, says its inventory levels are stable despite ongoing issues.
Dealer inventories for Caterpillar are currently at lower levels than historical averages, indicating tight supply conditions.
Company Outlooks
| Company | Outlook | Date |
| Titan Machinery | Positive | 8/26/2021 |
| John Deere | Positive | 8/20/2021 |
| Linamar | Positive | 8/11/2021 |
| Manitowoc | Positive | 8/5/2021 |
| Manitex | Positive | 8/3/2021 |
| Caterpillar | Positive | 7/30/2021 |
| CNHI | Positive | 7/30/2021 |
| Hitachi | Positive | 7/30/2021 |
| Komatsu | Positive | 7/30/2021 |
| Terex | Positive | 7/29/2021 |
| Oshkosh | Positive | 7/29/2021 |
| Volvo Construction | Positive | 7/20/2021 |
| Atlas Copco | Positive | 7/16/2021 |
Titan Machinery
Titan Machinery reported a 35% increase in equipment revenue for the second fiscal quarter, driven by strong demand and improved inventory management. The company is optimistic about continued growth, especially in construction and international markets.
"We are seeing increased construction activity across our markets, supported by low interest rates, new housing starts, and pending infrastructure legislation," said David Meyer, CEO.
"Our operating improvements have led to better profitability, and we're confident in our ability to meet revenue targets despite ongoing supply chain challenges."
"The recovery in our business is clear, and we're excited about the future as we continue to invest in efficiency and customer service."
View Titan Machinery dealersJohn Deere
John Deere's strong performance was fueled by broad-based demand across all product lines. Despite supply chain disruptions, the company expects continued growth in farm and construction equipment.
"North American construction equipment sales are projected to rise between 15% and 20%, with compact equipment up 20% to 25%," said John C. May, chairman and CEO.
"Forestry equipment demand is also strong, driven by rising lumber prices. We're seeing positive signs in non-residential investment and rental company orders."
"Demand for earthmoving and compact equipment is outpacing production, leading to lower inventory levels. We expect sales in the CNS segment to grow by around 30% this year."
View John Deere dealersLinamar (Skyjack)
Linamar's CEO, Linda Hasenfratz, noted that while supply chain issues are challenging, the company is managing them effectively and gaining market share.
"Skyjack had a strong quarter, with commercial and industrial sales up 48%. Equipment utilization is at 93% to 98% of 2019 levels, which is a good sign for future growth."
"Double-digit growth is expected in core North American and European markets in 2021 and 2022, and our strong backlog supports this outlook."
View Skyjack dealersManitowoc
"Demand for our products continues to exceed expectations, particularly in tower cranes and Asia," said Aaron Ravenscroft, CEO.
"Rising inflation, supply chain shortages, and labor constraints are headwinds we're actively addressing."
"The U.S. infrastructure bill could provide long-term support for our business, especially in the Americas."
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Manitex
Manitex reported higher revenues, improved margins, and solid EBITDA. The company is gaining market share in key European markets and sees a strong recovery in straight mast boom trucks.
"Distributor confidence is growing, and legislative progress on infrastructure spending suggests more construction activity ahead."
"While supply chain issues remain, we expect a strong finish to the year and continued growth in the coming months."
View Manitex dealersCaterpillar
Caterpillar saw strong performance across all regions and segments, with machines and construction industries up 20%.
"Residential construction demand remained robust, and non-residential sectors showed improvement. Mining and energy also performed well."
"Dealer inventory remains near the low end of normal ranges, and availability is within typical limits despite supply chain challenges."
View Caterpillar dealersCNH Industrial (Case)
"Despite supply chain and inflationary pressures, our end markets remain strong, and we're seeing record earnings. Our industry is clearly in a cyclical upturn."
"Construction equipment demand is growing in both light and heavy segments, driven by residential construction and preparations for the U.S. infrastructure bill."
View Case dealersHitachi
"Order intake is strong, particularly in markets recovering from the pandemic."
View Hitachi dealersKomatsu
"Construction, mining, and utility equipment demand is steady, with rental equipment starting to recover."
"European construction demand is picking up, and global mining demand is up 46% year-over-year."
View Komatus dealersTerex
"Access equipment demand is pointing to a multi-year replacement cycle as fleets age globally. We're seeing strong order activity and growth in parts and services."
"Global monetary and fiscal stimulus is supporting stronger demand, and we're seeing robust conditions worldwide."
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Oshkosh (JLG)
"Global supply chain disruptions and labor shortages are challenges, but we're delivering strong results."
"Access equipment demand is strong, with a $1.75 billion backlog and 90% revenue growth versus last year. Electric equipment is gaining traction."
"We expect a multi-year opportunity for fleet replacements as rental companies look to modernize their fleets."
View JLG dealersVolvo Construction Equipment
"Despite semiconductor and material shortages, we achieved an adjusted operating margin of 10.7% in Q2."
"We've introduced price increases to offset rising raw material costs."
View Volvo Construction dealersAtlas Copco
"Order intake increased 45% to a record level, with organic growth of 54%. Customer activity remains high."
View Atlas Copco dealersFind Similar Articles By Topic
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