Global Construction Equipment Sales Hold Up Despite China Slowdown
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In 2010 and 2011, global construction equipment industry growth was 50 percent and 26 percent, respectively. The market scale is roughly $190 billion, according to a new study at reportlinker.com.
American companies, in particular, performed well in the first quarter of 2012. Revenue from the Machinery and Power Systems division of Caterpillar (NYSE: CAT) surged by 25 percent, with the operating profit also rising 25 percent.
Although the domestic market in China was gloomy, the export market witnessed boom. In Q1 2012, the export volume of excavators reached 816, up 82.6 percent year-on-year, while that of loader and bulldozers increased by 38.3 percent and 9.4 percent to 7,548 and 908, respectively.
Caterpillar is a great global construction play, but investor can also take a look at PowerShares Emerging Markets Infrastructure ETF (NYSE: PXR). PXR invests in companies in construction and engineering, construction machinery, construction materials, diversified metals and mining, heavy electrical equipment, industrial machinery and steel. Its top countries allocations are China, Taiwan, South Africa, and Brazil.
American companies, in particular, performed well in the first quarter of 2012. Revenue from the Machinery and Power Systems division of Caterpillar (NYSE: CAT) surged by 25 percent, with the operating profit also rising 25 percent.
Although the domestic market in China was gloomy, the export market witnessed boom. In Q1 2012, the export volume of excavators reached 816, up 82.6 percent year-on-year, while that of loader and bulldozers increased by 38.3 percent and 9.4 percent to 7,548 and 908, respectively.
Caterpillar is a great global construction play, but investor can also take a look at PowerShares Emerging Markets Infrastructure ETF (NYSE: PXR). PXR invests in companies in construction and engineering, construction machinery, construction materials, diversified metals and mining, heavy electrical equipment, industrial machinery and steel. Its top countries allocations are China, Taiwan, South Africa, and Brazil.
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