By: Rob Wertheimer
We’ve argued that earthmoving construction has a long upcycle ahead, that investors who see CAT as peaky are getting the cycle wrong. That’s been based on a simple look at fleet dynamics. The industry hasn’t sold much equipment yet this whole cycle, so the fleet has been aging out for years. But all things wear out in time, and we are on the verge of a replacement cycle plus fleet expansion cycle that should produce a very positive next few years.