Thursday, June 2, 2011

The Analysis of the Condition of Heavy Machinery Market

Despite the global economic crisis, the construction machinery industry seems to flourish as it has experienced sales of about $15.4 billion lately. The machines like draglines, excavators or power cranes had impressive total sales of $3.2 billion. It means that annually, the heavy machinery industry features the growth of five percent.
The customers who are the most active on the construction machinery and equipment market include mainly companies dealing with renting and leasing equipment, construction companies and the companies that belong to the adjacent industry segments, such as agriculture, mining, waste management and forestry. Out of all of these, small construction companies seem to be the fastest growing segment of customers, however they are also the most vulnerable as far as the changes in the market are concerned. When the global economic downturn reached its peak, Komatsu and Caterpillar companies have gone through decreases in sales followed by withdrawal of customers' interest from this branch of industry. This leads to the conclusion that in case the crisis is going to be long-lasting, thsi will mean the advent of hard times for the construction companies in relation to sales contracts acquisition and finance.
Of course, large commercial construction companies are the main target group of customers for the heavy machinery manufacturers. These are the companies that acquire over $2 billion in yearly revenue and search for the machines which are reliable, durable, easy to operate and able to do the job quickly and efficiently. To safeguard the constant interest of such companies, the heavy machinery producers decided to invest quite a lot in advertising to promote product awareness as it makes direct selling more effective in closing sales and reduces marketing costs. Also, to come up to the expectations of the potential customers, the manufacturers of the construction machinery focus on the modern designs of the vehicles, eathquake proofing and other important features that influence higher precision of machine's performance and the accuracy in commercial construction operations.

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