Why Should You Invest in Equipment Manufacturers?

Because there is an increase in construction projects because of the need to improve infrastructure, there will be an increase in the need for construction equipment. Huge investments in infrastructural projects in many countries have spurred the demand for heavy construction equipment for both residential and commercial purposes. According to MarketWatch, other activities, such as earthmoving, material handling, material transport, and so forth require the use of heavy construction equipment and those projects are growing in demand as well.

The need for heavy equipment has had a positive impact on the Brazilian economy. A rise in infrastructural projects has increased the demand for construction equipment, which has attracted companies to the area for business expansion. Hyundai Heavy Industries opened their first construction equipment factory in the country recently. The factory is expected to produce about 3,000 units each year. The equipment manufactured there will include backhoe loaders, excavators, and wheel loaders. Hyundai built the 6 million-square-foot factory for a $175 million investment.

Heavy Equipment

The Heavy Equipment Global Market

According to reports, the heavy equipment realm on the global market looks highly competitive. Because of this growth, investing in heavy equipment is a great addition for your financial portfolio. Many well-known equipment manufacturers have invested in other entities or bought out other companies altogether. JCB India launched seven new products in 2016, JohnDeere bought out Wirtgen Group at the end of 2017, and Caterpillar bought out a start-up, Yard Club, which facilitates equipment rental from contractor-to-contractor. These transactions increased the growth of those companies and for the stockholders.

The outlook of the heavy construction equipment market from 2018 to 2027 is very promising, so investing in this aspect of the infrastructure development process could be a very beneficial move that helps you reap financial rewards. If you are interested in investing in equipment manufacturers, you should talk with your financial advisor or investment broker, but the outlook for these kinds of investments is definitely good. There are many options out there, including:

  • Hyundai Heavy Industries
  • John Deere
  • Caterpillar
  • JCB India
  • Hitachi Construction Equipment
  • Komatsu
  • Volvo Construction Equipment
  • Liebherr
  • Sany
  • Zoomlion
  • Terex
  • Doosan Infracore
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