SIC 5082
CONSTRUCTION AND MINING (EXCEPT PETROLEUM) MACHINERY AND EQUIPMENT



This industry is comprised of establishments involved primarily in the wholesale distribution of construction, mining, and logging machinery and equipment. Industry products include cranes, dredges, and draglines (except ships), excavating machinery, front-end loaders, quarrying machinery and equipment, road construction and maintenance machinery, scaffolding, power shovels, and drilling equipment. Establishments engaged in marketing machinery and equipment for oil wells, however, are included in SIC 5084: Industrial Machinery and Equipment.

NAICS Code(s)

421810 (Construction and Mining (except Petroleum) Machinery and Equipment Wholesalers)

SIC 5082 Construction and Mining (Except Petroleum) Machinery and Equipment

Shipments of Mining and Construction Machinery
In millions of dollars.
Product Value of Shipments ($ mil.)
*Includes wheel and crawler tractors not listed separately due to confidentiality
SOURCE: U.S. Department of Commerce, Bureau of Census, 2003
Mining and Mineral Processing Equipment 1,062.8
Underground mining machinery (except parts) 325.7
Portable crushing, screening, washing and combination plants 69.4
Crushing, pulverizing and screening (except portable) machinery 231.1
Drills, other mining machinery, (n.e.c. except parts) 117.7
Portable drilling rigs and parts 317.0
Construction Machinery (includes surface mining equipment) 14,949.0
Tractor shovel loaders 3,413.1
Power cranes, draglines, excavators, including surface mining equipment 5,020.2
Mixers, pavers and related equipment 1,222.7
Scrapers, graders, off-highway trucks and coal haulers, trailers, rough terrain forklifts* 2,629.6
Machinery for mounting on tractors 245.5
Other construction machinery 2,417.9

As a whole, this industry consisted of an estimated 5,050 establishments that employed more than 93,168 workers. Industry sales were valued at more than $32 million in 2003. The U.S. states with the highest sales volume included Texas, North Carolina, California, Illinois, and Louisiana, which together accounted for more than 57 percent of the industry's output in that decade.

Demand for construction equipment fluctuated in accordance with spending in the construction industry. The industry managed to weather the global recession of the early 1990s with little more than a slowdown in sales growth. Fairly dramatic growth characterized the industry during the mid- to late 1990s, despite a nationwide trend toward business consolidation in most other sectors. Within this industry, sharp increases were seen in both the number of establishments and the size of their workforces.

As the industry entered the new millennium, it faced increased competition from such nontraditional participants as equipment rental services and large-format warehouse retailing. Industry analysts advised distributors dealing with contractors to focus on niche products and full-service offerings in order to keep their customers from turning to do-it-yourself retail outlets. Moreover, information technologies like the Internet provided new marketing challenges to the industry by allowing potential customers to easily reach outside of their local area to obtain equipment. As a result, numerous participants in the industry, as well as their trade associations, established Internet sites to reach the newly widened market.

Mining and mineral processing equipment was valued at $1.1 billion for 2003. The construction machinery sector, including surface mining equipment, was valued at $15 billion. The Association of Equipment Manufacturers (AEM) predicted the overall construction equipment industry within the United States would experience a loss of 0.4 percent for 2003. However, more than 87 percent of dealers were expecting revenue growth.

Two major players in the wholesaling of construction and mining machinery in the late 1990s were Caterpillar Inc. of Peoria, Illinois, and CNH Global N.V., which is headquartered in the Netherlands but operates in more than 15 countries, including the United States. Both companies manufactured this equipment and marketed it through their own networks of distributors. Furthermore, both companies loomed large in the production of agricultural equipment, which is not covered by this industry. Caterpillar's 2003 sales totaled $22.8 billion, while CNH Global reported 2003 sales were $10.1 billion. Deere & Company of Moline, Illinois was also an industry leader; in fact, Deere's construction and forestry division reported a 67 percent increase for the second quarter of 2004.

Further Reading

Caterpillar Inc. Company Profile, May 2004. Available from http://www.forbes.com/finance/mktguideapps/compinfo/CompanyTearsheet.jhtml?tkr=CAT.com .

"Construction Machinery Manufacturers Optimistic about Business Growth in 2004." Trailer Body Builders, 11 November 2003. Available from http://www.keepmedia.com/pubsTrailerBodyBuilders/2003/11/01/329058 .

CNH Global N.V. Company Profile, May 2004. Available from http://www.forbes.com/finance/mktguideapps/compinfo/CompanyTearsheet.jhtml?tkr=CHM.com .

D&B Sales & Marketing Solutions, May 2004. Available from http://www.zapdata.com .

"Deere Construction Division Sales up 67% in Second Quarter." AED News, 18 May 2004. Available from http://www.aednet.org/aednews/index_full_story.cfm?id=6270358 .

"Equipment Dealers Forecast Increases in Revenue in 2004." Associated Equipment Distributors, 30 December 2003. Available from http://www.aednet.org/aednews/index_full_;story.cfm?id=5175853 .

"Shipments of Mining and Construction Machinery." U.S. Department of Commerce, Bureau of Census. 26 August 2003. Available from http://www.nma.org/statistics/pub_mining_equip_stats.asp .

U.S. Census Bureau. Statistics of U.S. Businesses 2001. Available from http://www.census.gov/epcd/susb/2001/US421420.HTM .

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