Investor Alert: Caterpillar, Volvo sales under pressure by China's push for self-sufficiency

The global market for heavy construction machinery and mining equipment will see strong growth through the next two decades. Over a billion people in Asia, Africa, and South America will move to cities, and huge new investments in mines are underway.

But under China's "Delete-America" plans, foreign suppliers of raw materials, energy, and technology will be replaced by China's domestic firms, wherever possible. China has dozens of high-quality manufacturers of heavy construction and mining equipment and tools, and a strong preference for those domestic suppliers is already evident in sales and earnings reports from Caterpillar and Volvo.

CAT and Volvo are already seeing double-digit percentage declines in their sales to the parts of the world that will see the largest demand growth.

Resources and links:

International Energy Agency, Global Critical Minerals Outlook 2024: Market review

Q2 2024 Caterpillar retail results

Wall Street Journal, Caterpillar's Earnings Beat Expectations, but Machinery Maker Cuts Sales Guidance

Volvo CE Sales Drop 15% in Q2

Volvo CE deliveries, sales drop amid declining demand

Wall Street Journal, China Intensifies Push to ‘Delete America’ From Its Technology

Construction Equipment Market Size, Share & COVID-19 Impact Analysis, By Equipment Type, 30 September 2024

Mining Equipment Market report

Equipment World, Caterpillar Construction Equipment Sales Rise 6% in North America

Mining Global Market Report 2024

China's heavy equipment market and segmentation analysis

Closing scene, Danba, Sichuan

[jonathanlewis]

If Chinese EVs are not allowed in the USA, then why should Caterpillar or any European or UK machinery be allowed in China?

[badboi]

Greetings from Germany! I really appreciate the work you do! Many Many thanks. Watching the channel for two months and getting an overview from the other side of the globe. Cause as you already mentioned, there is no real insight on relevant media about your content .
Straight to point. No bs around. Great!
Please keep up the amazing work you do!

[eugenec]

The US Decoupling has achieved a great success. The US, Canada and EU are now living in the world of their own. The other continents are busily and actively cooperating with each other to build and progress on the other side of the world. The West has gotten what they wished for. Cheers!

[wenling]

through 1980s to 2000s, Caterpillar and other West companies tried to buy out all of those Chinese companies which built their foundation in Mao's era, they almost succeeded. but rejected by Chinese central government in the end.
This is exactly the reason why industrialization late comers, e.g. China, needs a strong and independent sovereign statehood to protect its industrial capacities in its infancy. ( of course, Chinese are also lucky that it has huge domestic market to cultivate those companies to grow)
That's also why Chinese people are so lucky to have CCP not only founded their country, but also firmly kicked out all of colonial influence at its foundation! (That's also why the West demonized Mao's era so much)

compared to Brazil development history, anyone can understand that.

The reason that I know this, because my parents once worked in one of those Chinese companies that listed above.

[MUSICrealLIFE]

Norway’s largest pension fund, KLP, recently divested its holdings in Caterpillar, valued at about $69 million, due to concerns over Caterpillar’s equipment being used by the Israeli military. KLP cited specific concerns that Caterpillar machinery has been utilized in demolishing Palestinian homes and infrastructure, a process KLP associates with violations of international law. Despite attempts to engage Caterpillar on these issues, KLP found the company’s responses insufficient to mitigate these ethical concerns, prompting the fund to withdraw its investment​

[michaelauger]

US and Europe needs to stop encouraging wars, sanctions and promote fair trade.

[TexasRiverRat]

As always it's refreshing to get news from an honest and reliable source as all we get here in the us is one sided BS! Thank you sir! Stay well and safe.

[srbislavn]

western world monopolies don't work any more ... Wonderful play by hardworking Chinese people

[wm]

It used to be called being “self-sufficient, ” and it was something that healthy adults, communities, and countries strived for. Not something to be ashamed of.

[willengel]

Six of the world's ten biggest construction companies are Chinese, none for US. they determined which brand of equipment to buy. they buy foreign if they don't have a choice.

China sort of has a monopoly building infrastructure for BRI countries.

[phils]

In the meantime, SANY are seeing sales booming in this very sector. 35.9% increase in international sales last year. At the smaller excavator end of the market (including "mini-diggers") there are a vast number of Chinese manufacturers, aimed squarely at the farm industry, and small scale domestic construction.

[oberstleutnant]

Made in China products always offer good value for money. China's tunnel boring machines and hesvy construction equipment are no exception.
China's Sanyi, XCMG and Shantui CE gradually dominate the market over the like of Caterpillar or Kamatsu.

[lfish]

Living in a farming community in North America. A John deer combine cost 1.5 millions. About the same price for a quarter piece of farm land. Plus high price of fertilizer and chemical, farming here is not competitive.

[ramonching]

China's drive for self sufficiency. I wonder who pushed them to that mindset. 😂😂😂

[rvbsjbb]

When you have predatory trade practices like the US/EU, what do you expect from potential customers?

[hardangervidda]

Janet Yellen always end every speech with the sentence: I really hope China do not retaliate.. what did they

[Spirit-vlad]

Best channel about everything china and the world economy as a whole 👏🏼 bravo sir

[bhtansg]

Another awesome report that put MSM to shame. Thanks.

[zaffvideos]

It has been 12 days man, been missing Kevin, He has been so refreshing to watch and learn something that actually has a real time value in our lives.
I would touch you tube with a stick if its wasn't Kevin.

[davidrichards]

China now has 3X more miles of express highway than the US. And it's about 50K - 0 for hi-speed rail.