The world demand for heavy construction equipment is projected to increase by 5.9 percent per year through 2003, almost identical to the 1993-1998 rate and exceeding the rate projected four years earlier. Continued healthy growth is attributed in part to the recovery from recession in several Asian countries. Solid growth is also expected in Latin America and Africa. A minor, cyclical slowdown, however, in the mature markets of North America and Western Europe is likely. The industry is not as heavily concentrated as before, but acquisitions are still ongoing and strategic partnerships are on the rise.
Competition is keen, and price increases tend to be modest.
Equipment rental and leasing are also popular. Technical advances in equipment design and security assist in marketing efforts.