Five companies stand the strongest in the world of construction heavy equipment, particularly excavators. Those are Hitachi, Volvo, Komatsu, Doosan, and Caterpillar. They’re the names you’d see the most often imprinted on backhoes, trenching machines, and such. But out of those five brands, Caterpillar may offer the best bang for your buck. The company is one of the best excavator makers in the world. They accumulated a revenue of $55 billion in 2018.
Caterpillar Inc. is more known as CAT. It is a multinational company with more than 500 manufacturing and servicing locations in no less than 180 countries. Aside from heavy construction equipment, CAT also offers small-scale industrial tools and branded gifts and apparel. Since the company’s inception in 1925, they have grown substantially in size and revenue. Currently, they have over 100,000 employees across the world.
What Makes CAT the Best?
Range of Offers
Though well-known for their extensive line of industrial machinery and vehicles, CAT also excels in making farm equipment, small-scale industrial tools, gifts, clothing, and — believe it or not — smartphones. Not like iPhones and Samsung’s, but smartphones specifically for the industrial market. In February 2016, Caterpillar launched the CAT S60 phone. The device detected heat patterns using a unique thermal imaging feature. And unlike most consumer smartphones, the CAT S60 was water-resistant up to 16 feet. It could operate for approximately one hour underwater.
The CAT S60 has now been upgraded to CAT S61, and an air quality monitoring feature was added.
The Biggest Excavator in the World is a CAT
CAT is the maker of Bucyrus RH400, the biggest excavator in the world. Hence, if you need any colossal industrial equipment, you can count on CAT to provide it without issue.
Ease of Maintenance
One of the strongest selling points of CAT is the ease of maintenance with which their equipment comes. In addition, their excavators are installed with the latest safety features and technology. Those add-ons are also low-maintenance and are compatible with different types of construction projects.
Suitable for Industries Outside Construction
CAT excavators and other industrial equipment aren’t just designed for construction projects. They also have applications in agriculture, mining, forestry, and many more industries. The CAT C15 engine, for example, is compatible with the company’s bore/drill rigs, compactors, compressors, cranes, draglines, irrigation equipment, and more. Many of CAT’s excavators can benefit from a value-for-money C15 overhaul kit if they require a swift upgrade without installing too many aftermarket parts.
Consistent Market Performance
Caterpillar is sometimes compared to Deere, another top-selling heavy equipment maker. But CAT has never once lost to Deere. For one thing, Deere primarily deals with farm equipment, while CAT merely dabbles in it. Both companies, however, offer construction equipment.
In 2018, Deere’s revenue was only $37 million, while CAT’s was $55 billion, which was almost 50% higher. Deere might’ve overtaken CAT in 2015, but only by a small margin. CAT added $7.7 billion to their revenue at that time, while Deere managed to snag $8.5 billion. Still, overall, CAT has a larger market and is thus financially stronger than Deere.
Upbeat Metal and Energy Costs Work in CAT’s Favor
When metal and energy costs undergo fluctuations, CAT isn’t put at a disadvantage. Upbeat metal and energy costs work in their favor, as they are often paired with a strong demand for power-generating products. This is why CAT is consistent in terms of revenue, among other things.
Open for Rent
Although most of CAT’s revenue comes from the sale of heavy construction equipment, they’ve earned a stellar reputation for rented machines, too. Construction startups with budget constraints can rent CAT machinery to provide high-quality service and workmanship. Renting equipment is also convenient for short-term construction projects.
CAT also sells used equipment, which they insure. This is helpful for developers and project owners looking to cut costs.
Large Distribution Network
Construction, mining, agriculture, and forestry firms don’t need to look far to find CAT equipment. CAT products are sold through a large distribution network. They have 168 dealers serving in 193 countries. And they are continuously growing, so expect new distributors to emerge in the future. CAT has expanded so much that its dealership network has more employees than CAT itself.
Whether you’re an investor diversifying your portfolio or a contractor seeking top-notch excavators, Caterpillar Inc. won’t fail you. Caterpillar utilizes their resources well, resulting in higher returns on assets and asset turnover ratios. Moreover, their market valuation reached more than $70 billion in 2019, 40% higher than Deere’s $55 billion. Hence, CAT machinery can maintain its competitive pricing and high-quality features.
Considering all of these, if your company would need heavy equipment for an incoming project, you know where to look. While other excavator brands don’t have any bad qualities, CAT can make the most out of your outlay.