Key Takeaways
- Most companies are seeing 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 costs, especially for materials like steel and copper, are increasing manufacturing expenses.
- Supply chain issues persist, but large manufacturers like Caterpillar say they’re manageable.
- Equipment rental companies are experiencing a recovery in fleet demand.
Global construction demand remains strong, fueled by post-pandemic recovery efforts. Many manufacturers believe the industry has long-term tailwinds from government stimulus and infrastructure projects.
While most companies report supply chain challenges, they don't seem to be causing major inventory shortages. Caterpillar notes that dealer inventories are currently at historically low levels.
Several key players in the construction equipment sector have issued positive outlooks for the remainder of the year. These include Titan Machinery, John Deere, Linamar, Manitowoc, Caterpillar, CNH Industrial, Hitachi, Komatsu, Terex, Oshkosh, Volvo Construction Equipment, and Atlas Copco.
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 revenues during its second fiscal quarter. CEO David Meyer highlighted the company's strong inventory position and growing parts and service business as key drivers of this performance.
"We're particularly pleased with the improved performance in our Construction and International segments," he said.
Despite ongoing supply chain challenges, the company remains confident in its ability to meet revenue targets. It expects continued growth through the end of the fiscal year.
CFO Bryan Knutson noted that rising construction activity across multiple markets—driven by economic reopenings, low interest rates, and new housing starts—is fueling demand. He also pointed to improved operating efficiencies contributing to better profitability.
View Titan Machinery dealersJohn Deere
John Deere’s leadership emphasized the company’s strong performance across all product categories, despite ongoing supply chain pressures. CEO John C. May stated that favorable market conditions are expected to continue.
"North American construction equipment sales are forecast to rise between 15% and 20%, with compact equipment up 20% to 25%," said John Stone, President of Construction & Forestry.
The company also noted strong demand in the forestry sector, driven by increased lumber production. Sales of earthmoving and compact equipment are expected to outpace production, leading to lower inventory levels.
View John Deere dealersLinamar (Skyjack)
Linamar CEO Linda Hasenfratz noted that while supply chain constraints are challenging, the company is managing them effectively. She added that Skyjack is seeing strong market demand and is gaining market share.
"Equipment utilization levels remain high, with Q2 utilization reaching 93% to 98% of 2019 levels," she said. "We expect double-digit growth in core North American and European markets in 2021 and 2022."
View Skyjack dealersManitowoc
Manitowoc CEO Aaron Ravenscroft stated that demand for their products exceeded expectations, driven by an improving market. However, he warned that inflation, supply chain issues, and labor shortages will pose challenges in the second half of the year.
The company saw strong demand in Asia and the Americas, with the potential for further growth if the U.S. infrastructure bill is passed.
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Manitex
Manitex CEO Steve Filipov reported higher revenues, improved margins, and a strong EBITDA performance. He also noted that the company is gaining market share in several European countries.
"We're seeing more confidence from our distributors and partners in their order patterns," he said. "With the potential for increased construction activity due to infrastructure spending, we expect a strong finish to the year."
View Manitex dealersCaterpillar
Caterpillar Chairman and CEO Jim Umpleby noted that sales and revenues rose across all regions and segments, reflecting improved end-market conditions.
The company saw strong demand in residential and non-residential construction, as well as in mining and energy sectors. Dealer inventory levels remained low, indicating strong demand.
View Caterpillar dealersCNH Industrial (Case)
CEO Scott Wine noted that the company's strong end-market performance, combined with pricing strategies and operational efficiency, led to record earnings in the second quarter.
"Our industry is clearly in a cyclical upturn," he said. "Construction Equipment demand is growing in both light and heavy segments, with the U.S. infrastructure bill playing a key role in driving future growth."
View Case dealersHitachi
Hitachi reported solid order intakes, primarily in markets recovering from the pandemic.
View Hitachi dealersKomatsu
Komatsu expects steady demand in residential and non-residential construction, as well as in road and traffic infrastructure. Rental equipment demand is also beginning to recover.
European construction demand is on the rise, particularly in the UK, Germany, and France. Global mining demand is up sharply, driven by growth in Oceania, Latin America, and Asia.
View Komatus dealersTerex
Terex reported strong performance in its AWP and MP segments, benefiting from positive market fundamentals. The company expects a multi-year replacement cycle for access equipment as fleets age globally.
Demand for utility equipment is strong, and the company is seeing growth in parts and service businesses. Global monetary and fiscal stimulus programs are also supporting end-market demand.
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Oshkosh (JLG)
Oshkosh CEO John Pfeifer acknowledged the challenges posed by global supply chain disruptions and labor shortages but noted that the company delivered strong results.
"We expect a multi-year opportunity for robust replacement demand as rental companies look to modernize their fleets," he said. "The move toward electric equipment is gaining traction, with customers valuing performance, cost savings, and environmental benefits."
View JLG dealersVolvo Construction Equipment
Volvo Group CEO Martin Lundstedt noted that despite semiconductor and material shortages, the company achieved a strong adjusted operating margin of 10.7% in Q2 2021.
"We’ve introduced price increases to offset rising raw material costs," he said.
View Volvo Construction dealersAtlas Copco
Atlas Copco reported a 45% increase in order intake, with organic growth of 54%. The company expects customer activity levels to remain high.
View Atlas Copco dealersFind Similar Articles By Topic
#Earnings Summary #construction #Caterpillar #Case Construction #Genie #Terex #JLG #Volvo Construction #John Deere #Manitowoc #Hitachi #komatsu
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