Rock & Dirt’s Weekly Recap –
News in the Construction Equipment Industry
Need a quick update on what happened last week in the construction industry? Every Monday we will provide a brief overview of some of the top stories for your consumption.
The construction fuel consumption index number has reported an increase in fuel use by 4.5% in May (5.1% higher than May of 2011). Unfortunately, this up and down movement continues to signify a fragile state of the construction industry. The CFI relates fuel purchases to construction activity (total construction put in place). See more below.
The report for the global and Chinese construction equipment industry for 2011-2012 has been released. In summary, the global construction equipment industry is relatively stable since last year’s report. An example: revenue from Machinery and Power Systems division of Caterpillar surged by 25% in Q1 2012.
Despite the fragile state of the construction industry, Caterpillar has provided the best risk-adjusted return among its competitors since 2009. With sales of more than $2 billion in the past three years, Caterpillar was able to increase their risk-adjusted percentage by 4.5%.