Published on 28 May 2024 on Zacks via Yahoo Finance
The Zacks Manufacturing - Construction and Mining industry faces challenges due to the ongoing contraction in manufacturing activities and a decline in orders due to low customer spending. Elevated input costs pose concerns. However, signs of easing supply-chain issues offer some respite.Increased infrastructure investment in the United States and demand from the mining sector, driven by the energy transition trend, are expected to buoy the industry. Caterpillar Inc. CAT, Komatsu KMTUY, Hitachi Construction Machinery HTCMY and Terex TEX are poised to benefit from these trends. Their emphasis on introducing technologically advanced products, productivity and efficiency enhancements will aid growth.
Industry Description
The Zacks Manufacturing - Construction and Mining industry comprises companies that manufacture and sell construction, mining and utility equipment. They support customers using machinery in the construction of commercial, institutional and residential buildings, and infrastructure projects. Their equipment is also utilized in underground mining, drilling, mineral processing and surface mining to extract and haul copper, iron ore, coal, oil sands, aggregates, gold, and other minerals and ores. Their products are varied, including loaders, pavers, dozers, excavators, concrete mixer trucks, crushing, pulverizing and screening equipment, tractors, and cranes. Industry participants support oil and gas, power generation, marine, rail and industrial applications through their reciprocating engines, generator sets, gas turbines and turbine-related services.