World heavy construction equipment demand will grow 5.4 percent annually through 2009 based on continued expansion of emerging markets such as Eastern Europe, India and China. North America will remain the largest and fastest growing market within the Triad (e.g., North America, Japan, Western Europe).

This study analyzes the $81 billion world heavy construction equipment industry. It presents historical demand data and forecasts to 2009 and 2014 by product (e.g., loaders, off-highway trucks and tractors, cranes and draglines, graders and rollers, mixers and pavers, parts and attachments); by world geographic region (e.g., North America, Western Europe, Asia/Pacific); and for 28 major countries.

The study also considers market environment trends and indicators, details industry structure and company market share, and profiles 33 major players including Caterpillar, Komatsu, Volvo, Hitachi, CNH, Terex, Deere, Liebherr-International, Kobe Steel, Ingersoll-Rand, and JCB.

                           TABLE OF CONTENTS
                                    
  
  SECTION                                                          PAGE
  
         INTRODUCTION                                                 x
         
   I.    EXECUTIVE SUMMARY                                            1
         
  II.    ECONOMIC & MARKET ENVIRONMENT                                4
         General                                                      4
         World Economic Outlook                                       5
         World Fixed Investment Outlook                              10
         World Demographic Outlook                                   13
           Population Outlook                                        14
           Urban Population Outlook                                  15
         Pricing Patterns                                            17
         Technology                                                  20
         
 III.    SUPPLY & DEMAND                                             22
         General                                                     22
         World Heavy Construction Equipment Markets                  26
           Regional Markets                                          26
           Rental/Leasing Markets & Beyond                           28
         World Heavy Construction Equipment Production               31
           Producing Countries                                       32
           Products                                                  35
              Loaders                                                36
              Off-Highway Trucks & Tractors                          38
              Cranes & Draglines                                     39
              Graders, Rollers & Related Products                    40
              Mixers, Pavers & Related Products                      41
              Parts & Attachments                                    42
         International Trade Flows                                   43
         
  IV.    NORTH AMERICA                                               45
         General                                                     45
         United States                                               49
         Canada                                                      53
         Mexico                                                      57
         
   V.    WESTERN EUROPE                                              61
         General                                                     61
         Germany                                                     65
         France                                                      69
         Italy                                                       71
         United Kingdom                                              74
         Spain                                                       78
         Other Western Europe Countries                              82
           The Netherlands                                           84
           Austria                                                   86
           Belgium                                                   89
           Sweden                                                    92
           Finland                                                   96
           All Other West European Countries                         98
           
  VI.    ASIA/PACIFIC                                               101
         General                                                    101
         Japan                                                      105
         China                                                      110
         Other Asia/Pacific Countries                               115
           India                                                    116
           South Korea                                              120
           Australia                                                124
           Taiwan                                                   127
           Indonesia                                                130
           Thailand                                                 133
           Malaysia                                                 137
           All Other Asia/Pacific Countries                         140
           
  VII.   OTHER REGIONS                                              145
         General                                                    145
         Latin America                                              147
           Brazil                                                   151
           Chile                                                    154
           Argentina                                                157
           Other Latin America                                      160
         Eastern Europe                                             163
           Russia                                                   167
           Poland                                                   172
           Other Eastern Europe                                     175
         Africa/Mideast                                             178
           Turkey                                                   182
           Other Africa/Mideast                                     185
           
 VIII.   INDUSTRY STRUCTURE                                         190
         General                                                    190
         Industry Composition                                       191
         Market Share                                               194
         Product Development & Manufacturing                        195
         Marketing & Distribution                                   197
         Cooperative Agreements                                     199
         Financial Requirements                                     209
         Mergers, Acquisitions & Industry Restructuring             210
         Company Profiles                                           213
           Allgemeine Baumaschinene-Gesellschaft mbH, 
              see Ingersoll-Rand Company Limited                       
           American Augers Incorporated, see Astec Industries
                Incorporated                                           
           Astec Industries Incorporated                            214
           ASV Incorporated, see Caterpillar Incorporated              
           Atlas Copco AB                                           217
           Bell Equipment Limited, see Deere & Company                 
           Berco SpA, see ThyssenKrupp AG                              
           Bharat Earth Movers Limited                              220
           Blaw-Knox Construction Equipment Corporation, 
              see Ingersoll-Rand Company Limited                       
           Bobcat Company, see Ingersoll-Rand Company Limited          
           Carlson Paving Products Incorporated, see Astec 
              Industries Incorporated                                           
           Caterpillar Incorporated                                 221
           Chelyabinsk Tractor Plant-Uraltrac Limited               226
           Chicago Pneumatic Tool Company, see Atlas Copco AB          
           CNH Global NV, see Fiat SpA                                 
           Consolidated Diesel Company, see Cummins 
              Incorporated and Fiat SpA                                
           Cummins Incorporated                                     227
           Cummins Komatsu Engine Company, see 
              Cummins Incorporated and Komatsu Limited                 
           Daewoo Heavy Industries & Machinery Limited, see 
              Doosan Infracore Company Limited                         
           Deere-Hitachi Construction Machinery Corporation, 
              see Deere & Company and Hitachi Limited                  
           Deere & Company                                          230
           Doosan Infracore Company Limited                         234
           Dynapac AB                                               236
           European Engine Alliance, see Cummins 
              Incorporated and Fiat SpA                                
           Fiat SpA                                                 237
           Gehl Company                                             241
           Hensley Industries Incorporated, see Komatsu Limited        
           Herrenknecht AG                                          243
           Hitachi Limited                                          244
           Hitachi Sumitomo Heavy Industries Construction Crane
              Company Limited, see Hitachi Limited and 
              Sumitomo Heavy Industries Limited                        
           Hyundai Heavy Industries Company Limited                 248
           Industrial Power Alliance Limited, see Cummins 
              Incorporated and Komatsu Limited                         
           Ingersoll-Rand Company Limited                           250
           Intensus Engineering Incorporated LLC, see Xuzhou
              Construction Machinery Group Company Limited           
           Ishikawajima-Harima Heavy Industries Company Limited     254
           JCB Limited                                              255
           JLG Industries Incorporated                              257
           Kobe Steel Limited                                       259
           Kobelco Construction Machinery America LLC, 
              see Fiat SpA and Kobe Steel Limited                      
           Komatsu Cummins Engine Company Limited, see 
              Cummins Incorporated and Komatsu Limited                 
           Komatsu Limited                                          263
           Kubota Corporation                                       268
           L&T-Case Equipment Private Limited, see Fiat SpA            
           LBX Company LLC, see Fiat SpA and Sumitomo Heavy
                Industries Limited                                     
           Liebherr-International AG                                270
           Link-Belt Construction Equipment Company, see 
              Sumitomo Heavy Industries Limited                        
           Manitowoc Company Incorporated                           273
           Metso Corporation                                        276
           Mitsubishi Heavy Industries Limited                      277
           OmniQuip, see JLG Industries Incorporated                   
           Rental Service Corporation, see Atlas Copco AB              
           Roadtec Incorporated, see Astec Industries Incorporated     
           Sakai Heavy Industries Limited                           279
           Shin Caterpillar Mitsubishi Limited, see Caterpillar
              Incorporated and Mitsubishi Heavy Industries Limited   
           Sumitomo Heavy Industries Limited                        281
           Tadano Limited                                           283
           Tata Cummins Limited, see Cummins Incorporated 
              and Tata Group                                           
           Tata Group                                               285
           Telco Construction Equipment Company Limited, 
              see Hitachi Limited and Tata Group                       
           10G LLC, see Caterpillar Incorporated                       
           Terex Corporation                                        287
           ThyssenKrupp AG                                          292
           Trencor Incorporated, see Astec Industries Incorporated     
           Volvo AB                                                 293
           Xiamen Engineering Machinery Company Limited             296
           Xuzhou Construction Machinery Group 
              Company Limited                                       297
         Other Companies Mentioned in Study                         299
    

                            LIST OF TABLES
                                   
    TABLE NUMBER                                                   PAGE
  
         SECTION I -- EXECUTIVE SUMMARY
         Summary Table                                                3
  
         SECTION II -- ECONOMIC & MARKET ENVIRONMENT
    1    World Gross Domestic Product by Region                       9
    2    Fixed Investment by Region                                  12
    3    World Population by Region                                  15
    4    World Urban Population by Region                            16
    5    Heavy Construction Equipment Pricing Patterns               19
  
         SECTION III -- SUPPLY & DEMAND
    1    World Heavy Construction Equipment Demand by Region         27
    2    World Heavy Construction Equipment Shipments by Region      34
    3    World Heavy Construction Equipment Production by Type       36
    4    World Heavy Construction Equipment Net Exports by Region    44
  
         SECTION IV -- NORTH AMERICA
    1    North America Heavy Construction Equipment 
           Supply & Demand                                           48
    2    United States Heavy Construction Equipment 
           Supply & Demand                                           53
    3    Canada Heavy Construction Equipment Supply & Demand         57
    4    Mexico Heavy Construction Equipment Supply & Demand         60
         
         SECTION V -- WESTERN EUROPE
    1    Western Europe Heavy Construction Equipment 
           Supply & Demand                                           64
    2    Germany Heavy Construction Equipment Supply & Demand        68
    3    France Heavy Construction Equipment Supply & Demand         71
    4    Italy Heavy Construction Equipment Supply & Demand          74
    5    United Kingdom Heavy Construction Equipment 
           Supply & Demand                                           78
    6    Spain Heavy Construction Equipment Supply & Demand          81
    7    Other Western Europe Heavy Construction Equipment 
           Supply & Demand                                           83
    8    The Netherlands Heavy Construction Equipment 
           Supply & Demand                                           86
    9    Austria Heavy Construction Equipment Supply & Demand        89
   10    Belgium Heavy Construction Equipment Supply & Demand        92
   11    Sweden Heavy Construction Equipment Supply & Demand         95
   12    Finland Heavy Construction Equipment Supply & Demand        98
   13    All Other West European Countries Heavy Construction 
           Equipment Supply & Demand                                100
  
         SECTION VI -- ASIA/PACIFIC
    1    Asia/Pacific Heavy Construction Equipment 
           Supply & Demand                                          105
    2    Japan Heavy Construction Equipment Supply & Demand         109
    3    China Heavy Construction Equipment Supply & Demand         114
    4    Other Asia/Pacific Heavy Construction Equipment 
           Supply & Demand                                          116
    5    India Heavy Construction Equipment Supply & Demand         120
    6    South Korea Heavy Construction Equipment 
           Supply & Demand                                          123
    7    Australia Heavy Construction Equipment Supply & Demand     127
    8    Taiwan Heavy Construction Equipment Supply & Demand        130
    9    Indonesia Heavy Construction Equipment Supply & Demand     133
   10    Thailand Heavy Construction Equipment Supply & Demand      136
   11    Malaysia Heavy Construction Equipment Supply & Demand      140
   12    All Other Asia/Pacific Heavy Construction Equipment 
           Supply & Demand                                          144
         
         SECTION VII -- OTHER REGIONS
    1    Other Regions Heavy Construction Equipment 
           Supply & Demand                                          147
    2    Latin America Heavy Construction Equipment 
           Supply & Demand                                          151
    3    Brazil Heavy Construction Equipment Supply & Demand        154
    4    Chile Heavy Construction Equipment Supply & Demand         157
    5    Argentina Heavy Construction Equipment Supply & Demand     160
    6    Other Latin America Heavy Construction Equipment 
           Supply & Demand                                          163
    7    Eastern Europe Heavy Construction Equipment 
           Supply & Demand                                          167
    8    Russia Heavy Construction Equipment Supply & Demand        171
    9    Poland Heavy Construction Equipment Supply & Demand        175
   10    Other Eastern Europe Heavy Construction Equipment 
           Supply & Demand                                          178
   11    Africa/Mideast Heavy Construction Equipment 
           Supply & Demand                                          182
   12    Turkey Heavy Construction Equipment Supply & Demand        185
   13    Other Africa/Mideast Heavy Construction Equipment 
           Supply & Demand                                          189
  
         SECTION VIII -- INDUSTRY STRUCTURE
    1    Revenue Data: Selected Construction Equipment 
           Manufacturers, 2004                                      193
    2    Selected Cooperative Agreements                            201
    3    Selected Acquisitions & Divestitures                       212
         
  
    

                               LIST OF CHARTS
  
    CHART NUMBER                                                   PAGE
  
         SECTION II -- ECONOMIC & MARKET ENVIRONMENT
    1    Per Capita Heavy Construction Equipment Demand/
           per Capita Fixed Investment Relationship, 2004            13
         
         SECTION III -- SUPPLY & DEMAND
    1    Global Construction Equipment Demand Drivers & Inhibitors   24
    2    Selected Global Age Distribution Trends, 2004               25
    3    World Heavy Construction Equipment Demand by 
           Region, 2004                                              28
    4    Possible  Asset Light  Plays Related to Construction 
           Equipment                                                 31
    5    World Heavy Construction Equipment Shipments 
           by Region, 2004                                           35
         
         SECTION VIII -- INDUSTRY STRUCTURE
    1    World Heavy Construction Equipment Market Share 
           by Company, 2004                                         195