Caterpillar is an American company that manufactures and sells machinery and engines. On top of that, it also offers financial products. Currently, Caterpillar ranks as the world’s top construction equipment manufacturing company. The company also falls as one of the Fortune 100 corporations in the US. Similarly, it ranks 65th on the Fortune 500 list.
Caterpillar started its operations in 1925. Since then, it has grown significantly and exceeded expectations to become a well-known name. In 2020, it generated revenues of $41.74 billion. However, this revenue includes the adverse impact of the COVID-19 pandemic. The company manufactures and sells various items under its CAT brand.
Caterpillar is the top name in the industry. For that, it receives significant competition from other companies. The top 10 Caterpillar competitors and alternatives include the following.
1. Volvo Construction Equipment
Volvo Construction Equipment (Volvo CE) is a prominent international company. The company develops, produces and sells construction equipment. On top of that, its products cover other related industries. Volvo is a subsidiary of the Volvo Group, including other well-known brands. Volvo CE offers various products in the markets where it operates.
Volvo CE’s products include hydraulic excavators, motor graders, pavers, soil and asphalt pavers, well loaders, milling machines, etc. The company operates various production facilities. Currently, it produces its products in the US, Brazil, Scotland, Sweden, Germany, China, Russia, France, etc. Volvo CE also sells its products under various brands. These include Volvo, SDLG and Terex.
2. Komatsu Limited
Komatsu Limited is a well-known Japanese brand. It is a multinational company that manufactures various equipment related to the manufacturing industry. Initially, it started its operations in 1921 after being spun off from Takeuchi Mining Industry. The company produces construction, mining, forestry and military equipment. It also provides diesel engines, press machines, lasers and thermoelectric generators.
Currently, Komatsu operates from Tokyo, Japan. The company holds the stature of being the second-largest manufacturer of construction and mining equipment. In that regard, Komatsu only falls short of Caterpillar in its ranking. However, it holds a larger market share in some areas, including China and Japan. Komatsu generated revenues of ¥2.444 trillion in 2019.
3. Wabtec Corporation
Wabtec Corporation is an American company that started its operations in 1999. The company was formed after a merger between Westinghouse Air Brake Company (WABCO) and Motive Power Industries Corporation. Currently, it operates from Pittsburgh, Pennsylvania. The company manufactures and sells various construction equipment and vehicles.
Wabtec’s products cover locomotives, freight cards and passenger transit vehicles. The company generated revenues of $3.882 billion in 2017. Consequently, it made operating profits of $421.7 million in that year. Similarly, its net income was $262.3 million. Wabtec also segregates its business into two segments. These include the Freight and Transit market segments.
4. Hyundai Heavy Industries
Hyundai Heavy Industries is one of the most prominent names in the shipbuilding industry. It is a South Korean company that operates in the industrial equipment sector. Currently, it offers shipbuilding, robotics, crude oil refining, ship lifecycle maintenance, offshore plant engineering, transformer manufacturing, etc. Hyundai Heavy Industries focuses on marine, oil refinery and energy industries.
Hyundai Heavy Industries started its operations in 1972. The company operated under The Hyundai Group. Overall, the company focuses on providing the best quality services to its customers. It also offers an alternative to Caterpillar in various markets. Although these companies do not deliver similar products, they have some overlaps in several areas.
5. Terex
Terex is a global manufacturer of lifting and material handling plants based in the US. The company covers various industries, including construction, infrastructure, quarrying, energy, shipping, mining, etc. In most of those areas, it poses as a competitor to Caterpillar. Currently, Terex is one of the most prominent names in the construction equipment industry.
Terex started as a division of General Motors. Later, however, this division started due to a ruling from the Justice Department. Despite that, Terex continued its operations in some areas. Later, it became a part of the IBH Holding group when General Motors sold it in 1980. The company reported revenues of $4.363 billion. In that year, its operating income was $174 million.
6. Deere & Company
Deere & Company is an American manufacturer active in the heavy equipment and lawn care industry. Its products include agricultural machinery, heavy equipment, forestry machinery, diesel engines, drivetrains, etc. Currently, it operates John Deere, which is its primary brand name. The company ranked 87th on the Fortune 500 list in the US. Apart from its manufacturing business, it also offers financial and other related services.
Deere & Company started its operations in 1804 under the well-known inventor John Deere. Although its operations were at a small scale first, it has grown as a top name in its industry. In 2019, Deere & Company generated revenues of $39.25 billion. The company shares the market with Caterpillar in various areas. Both companies are head-to-head in competition.
7. JCB
JCB is a UK-based equipment manufacturer for various sectors. These include construction, agriculture, waste handling and demolition. Initially, JCB started its operations in 1945 in Staffordshire, England. Its name stands for Joseph Cyril Bamford Excavators (JCB), named after its founder. JCB manufactures and promotes various products, which come under its primary brand.
JCB did not start as a part of large operations, unlike some other names on the list. Therefore, its operations were at a relatively lower level compared to others. However, it has experienced growth over the years. The company has achieved the stature of being a household name in the UK. However, its operations span over other markets as well. In 2019, the company reported revenues of £4.1 billion.
8. Sany Heavy Industry
Sany Heavy Industry is a Chinese multinational heavy equipment manufacturing company. The company operates from Hunan, China. Currently, it is the third-largest heavy equipment manufacturer in the world. On top of that, it also holds the stature of being the first Chinese to enter the FT Global 600 and Forbes Global 2000 list. Sany is well-known for its concrete machinery.
Sany is also a prominent supplier of excavators, cranes, wheel loaders and other heavy machinery. The company also holds over 12 industrial parks in China. On top of that, it also owns manufacturing facilities in Australia, Brazil, Canada, India, Russia, the US and other areas. Sany started its operations in 1989 and has grown to be one of the largest names in the industry.
9. Xuzhou Construction Machinery Group Co.
Xuzhou Construction Machinery Group Co. is a Chinese multinational heavy machinery manufacturing company. The company operates from Jiangsu, China. Initially, XCMD started its operations in 1989. The company ranks as the top name in the construction machinery industry. On top of that, it is the 3rd largest name in the world in that industry.
XCMD Group owns various subsidiaries. Among those, XCMD Construction Machinery Co. is the most recognized brand. The company operates in over 180 countries and regions. The group also holds a worldwide sales network. On top of that, it owns over 20 manufacturing bases in China. XCMD reported revenues of RMB 23.3 billion in 2014. Since then, its operations have grown further.
10. Hitachi
Hitachi is a Japanese multinational conglomerate corporation. The company started its operations in 1910. Currently, it operates under the Hitachi Group, which holds various brands. The company operates in over 19 business segments. One of those includes construction machinery, where it competes with Caterpillar. The company manufacturers and sells items, such as mini excavators, hydraulic excavators, road construction machinery, etc.
Hitachi reported revenues of $85.4 billion in 2019. These revenues come from various segments. In revenues, it exceeds Caterpillar’s business. However, Hitachi is more than just a company that operates in the construction equipment industry. Therefore, those revenues include other income as well. Despite that, Hitachi is a competitor and alternative to Caterpillar.
Conclusion
Caterpillar is the top name in the US in the construction equipment manufacturing industry. The company holds a significant portion of its current market as the best company to beat. However, it has also attracted substantial competition from other similar brands. Some of the top Caterpillar competitors and alternatives include the companies listed above.
