With Possible Mining CapEx Rebound, M Science Tracks Heavy Equipment Production

Can heavy machinery manufacturing recover as mines boost investments?

Will Tariffs Continue to Bury Caterpillar?

The Bureau of Labor Statistics recently reported that manufacturing jobs were down in December 2019, and the sector saw significantly reduced growth in 2019 (+46k jobs) compared to 2018 (+264k). This report comes sandwiched in between reports in late 2019 and early 2020 that Caterpillar is eliminating manufacturing jobs and taking steps to reduce production, as import tariffs have driven costs higher.

Some of the world's largest mining companies however, including Rio Tinto and BHP Billiton, have indicated that they are ready to begin increasing their capital expenditures again through 2020 after spending slumped since 2012.

In light of possible increased investments in the mining industry, M Science's Senior Industrials Analyst, Alex Prudhomme, has set his sights firmly on heavy machinery manufacturing and recently began tracking Caterpillar's mining equipment production.

This alternative data fueled tracker provides timely production estimates with monthly granularity, global coverage, and product break-outs. Industrials Analyst Alex Prudhomme had this to say about the next year in heavy equipment production:

"The mining industry is a big question mark headed into the new year with a recent drop in CapEx partially balanced by rosy 2020 forecasts. With a slowing global economy and political risk in key regions, there remains skepticism for a rebound. Our mining equipment production data is intended to provide a barometer to dig into what’s under the surface for CAT as we progress through the year."

Caterpillar reports full 2019 results on January 31st, 2020.

For all the latest mining, trucking, and farming equipment analysis and estimates, please reach out to insights@mscience.com to stay up to date on company- and industry-level trends.

All material contained in this Insights post is the property of M Science LLC or its affiliates unless otherwise indicated. All trademarks, service marks, logos and trade names used in this post are proprietary to M Science or other respective owners. This M Science Insights post is intended for informational purposes only. This post is dated as of the date of publication. M Science undertakes no obligation to update this post. Under no circumstances is this post to be considered as an offer to sell or solicitation of an offer to buy any securities of any company. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of previous recommendations. Comparisons of M Science published estimates to reported results are available by emailing info@mscience.com. M Science provides the information and data contained herein on an “as is,” “as available” basis, without representations or warranties of any kind whatsoever, expressed or implied. More information about M Science is available at http://www.adviserinfo.sec.gov/.

For all the latest mining, trucking, and farming equipment analysis and estimates, please reach out to insights@mscience.com to stay up to date on company- and industry-level trends.

All material contained in this Insights post is the property of M Science LLC or its affiliates unless otherwise indicated. All trademarks, service marks, logos and trade names used in this post are proprietary to M Science or other respective owners. This M Science Insights post is intended for informational purposes only. This post is dated as of the date of publication. M Science undertakes no obligation to update this post. Under no circumstances is this post to be considered as an offer to sell or solicitation of an offer to buy any securities of any company. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of previous recommendations. Comparisons of M Science published estimates to reported results are available by emailing info@mscience.com. M Science provides the information and data contained herein on an “as is,” “as available” basis, without representations or warranties of any kind whatsoever, expressed or implied. More information about M Science is available at http://www.adviserinfo.sec.gov/.
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