Friday Roundup: Caterpillar sales | Construction markets | Storent’s fleet investment

The week that was Aug. 1-7, 2024 was characterized by a focus on the health of the construction industry. With many companies releasing second-quarter results recently, eyes naturally turned toward market drivers, with construction taking center stage.

Caterpillar, the world’s largest construction OEM by sales, released its financial results for the second quarter of 2024, revealing sales for its Construction Industries fell by 7% compared to the same quarter last year.

Caterpillar revealed sales for its Construction Industries fell by 7% compared to the same quarter last year.

The US-based OEM reported Construction Industries’ total sales were US$6.683 billion in the second quarter of 2024, a decrease of US$471 million.

Sales in North America were at approximately the same level as in the second quarter of last year. Sales declined in EAME (Europe, Africa and the Middle East) by 27% and in Asia Pacific by 15%. The only region to see growth was in Latin America, where sales increased by 20%.

Also upon releasing its second-quarter results, the CEO of H&E Equipment Services in the US said the company was expecting a more moderate level of construction activity, with curtailed spending by smaller contractors in particular.

“We reiterate our view of a more moderate level of spending and project starts as the construction industry continues to transition to a lower level of activity compared to levels in 2022 and 2023,” said Brad Barber, CEO of H&E.

“Higher project financing costs and more stringent lending standards have led to curtailed spending, especially among smaller contractors.”

However, he added that mega-project and infrastructure activity continued to grow; “H&E’s participation in these projects continues to rise as the company fully leverages its increased scale in the US.”

In Australia, Kennards Hire, which is one of the largest equipment rental companies in the region, carried out a survey that revealed the majority of its construction business leaders see Australia’s construction industry as ‘stable.’

The third annual Construction Confidence Check survey, which tracked responses from over 410 businesses of varying sizes, found that 93% (up by 12% on 2023) of respondents believe the industry is able to withstand pressures to continue growing.

Respondents said cost-saving measures are a cause for optimism, with 37% of those surveyed revealing a shift in focus on increasing the quality of workmanship to reduce rework.

Elsewhere, Latvia-based rental company Storent Holdings said it intends to continue its investment in fleet and IT systems as it aims to make the most of “favorable” market conditions.

Latvia-based rental company Storent Holdings said it intends to continue its investment in fleet and IT systems as it aims to make the most of “favorable” market conditions.

During the first half of 2024, the company invested €15.5 million in the replacement and expansion of its fleet, with that number now expected to reach around €25 million in the coming months.

It added that it has invested €4.7 million on a number of cloud-based systems across all five of the countries in which it operates.

In OEM news, Spain-based Ausa announced it has signed an agreement with Turkuaz1 Makine, a supplier of equipment for mining and construction machinery which includes the exclusive import and distribution in Turkey of Ausa’s products.

“With Turkuaz1 Makine as our new partner in Turkey, we ensure that we can offer our product ranges throughout the territory,” says Manuel Urbaneja, country manager of Ausa.

“We see an upward trend in the rental of construction machinery but also in the agricultural sector, where our compact products fit perfectly. With Turkuaz1 Makine, we are convinced that we are starting a stable project with significant growth potential for both businesses.”