2015 Year in Review

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Business Review

Construction Industries

A Conversation With

Tom Pellette

Group President, Construction Industries

Construction Industries is built to support customers using machinery in infrastructure and building construction applications. The majority of machine sales in this segment are made in the heavy and general construction, rental, quarry and aggregates markets and mining. Responsibilities include business strategy, product design, product management and development, manufacturing, marketing and sales, and product support. The product portfolio includes backhoe loaders; compact, small and medium wheel loaders; small and medium track-type tractors; skid steer loaders; multi-terrain loaders; compact track loaders; small, medium and large track excavators; mini excavators; wheel excavators; motor graders; select work tools; pipelayers; track-type loaders; mid-tier soil compactors; telehandlers and related parts.

What are some examples of efficiency gains in your business?

We use constraints to make great things happen with fewer resources. Take the Last Mile Freight Program: We got together with our dealers and instead of getting multiple groups involved with our products’ outbound freight, Caterpillar handles that alone, and it’s driven a lot of cost out of the business.

Another example is how the Excavation Division is using the New Product Introduction process to emphasize modularity and common platforms in their Next Generation excavators. This takes costs out of the product in both the new equipment side and the aftermarket support side, lowering both the cost of our product and the cost of providing a service to our customers.

Why is big data and innovation so important to Caterpillar at this time in our history?

Data and technology will be core to serving our customers in the future. Equipment and technology are becoming table stakes, but using that technology to add value and make our customers more successful will be the key to who wins and who loses. Caterpillar does this through innovations Cat® Grade with Cat® Slope Assist, VisionLink®, Payload and all the other great offerings under Cat® Connect – that’s where data and technology add value for our customers.

What is the strategic importance of this sector to Caterpillar’s long-term business prospects?

As the global population grows, the need for infrastructure will grow too. We often say that the road to progress begins with a road, period. Construction is really at the heart of Caterpillar, and construction industries are right in the middle of building roads, bridges, ports and airports that allow mankind to continue to improve lives around the world.

Segment Profit

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Sales

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Sales by Geography

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End Markets Include:

  • Building Construction
  • Roads and Highway Construction
  • Dams and Hydroelectric Projects

Products

  • Backhoe Loaders
  • Compact, Small and Medium Wheel Loaders
  • Small and Medium Track-type Tractors
  • Skid Steer Loaders
  • Multi-terrain Loaders
  • Compact Track Loaders
  • Small, Medium and Large Track Excavators
  • Mini Excavators
  • Wheel Excavators
  • Motor Graders
  • Select Work Tools
  • Pipelayers
  • Track-type Loaders
  • Mid-tier Soil Compactors
  • Telehandlers