By nature, the construction industry has no choice but to be resilient. It’s an economically sensitive sector where projects have to navigate a landmine of risks and uncertainties. So it shouldn’t come as a surprise that despite some muddy weather conditions, the Association of Equipment Manufacturers’ Celebration of Construction on the National Mall carried on as planned, with passersby in Washington, D.C., marveling at the latest and greatest in construction equipment.
Sitting front and center on the Mall was Caterpillar, which was celebrating its 100th anniversary by showcasing the Cat® 340 hydraulic excavator, 140 motor grader, AP1055 tracked asphalt paver and D3 dozer.
Indeed, Cat and every other equipment manufacturer at the event have many reasons to celebrate. Let’s take a look at a few reasons for optimism in the industry and a few areas that warrant some concern.
Reason to celebrate: Advances in technology and sustainability
AEM used the lead-up to the event to unveil three technical guidance documents designed to establish a standardized vocabulary for discussing autonomy, cybersecurity and data in the non-road equipment sector. One document defines key levels of autonomous machine capability, from operator assistance to full autonomy, while the cybersecurity framework addresses current risk tiers and best practices for securing machine-generated data. The third document maps how data moves across equipment, cloud platforms and end users, providing clarity on interoperability. Together, AEM hopes the documents will reduce miscommunication, inform policymaking and build a common technical baseline as digital technologies make the non-road equipment industry safer and more efficient.
On the sustainability front, the National Asphalt Pavement Association was at the event to promote the growth of energy-saving, warm-mix asphalt, which accounted for 41% of all asphalt pavement produced in the United States in 2021. The industry has also embraced recycled materials. NAPA says 95% of asphalt mixtures were reclaimed from old asphalt pavements and put back to use in new pavements in 2021—up from 93% the previous year.
Meanwhile, Caterpillar touted the evolution of its remanufacturing efforts, particularly its C7 Reman Engine. The engine, built using a mix of new and end-of-life components, represents a broader effort to extend the life cycle of heavy equipment while reducing environmental impact. What began in 1973 as a single-engine program has grown into a global remanufacturing operation with more than 8,000 parts in circulation.
Caterpillar has also invested more than $30 billion over the past two decades in research and development focused on autonomy, alternative fuels, electrification and connectivity. Among the results of that investment is CAT Detect, a camera- and AI-enabled system that identifies people and potential hazards around job sites. Another system, CAT Grade, uses geo-fencing to enforce safe operating boundaries, such as preventing excavation near buried utilities or overhead power lines.
Reason for concern: The operator shortage
Roughly 45,700 openings for construction equipment operators are projected each year, on average, over the decade, according to the Bureau of Labor Statistics. Many of those openings will likely stem from the need to replace retiring workers.
Caterpillar has committed $100 million to community-focused vocational training, part of a broader push to build the next generation of skilled operators. The company also says it is working to lower the barrier to entry for new operators by investing in features like auto-dig, auto-return and payload matching. The company’s remote-control capabilities and simulator training offer safer ways to get up to speed. During the event, passersby on the Mall had an opportunity to try out Cat simulators alongside heavily experienced instructors.
Here’s a look at what it’s like to be in one:
Reason to celebrate (mostly): Less tariff anxiety
No one at the event was especially interested in getting in the weeds on tariffs, but it wasn’t a case of avoidant anxiety. There seems to be somewhat of a collective exhale from the industry even compared with just last month. In a May 1 poll in the Associated General Contractors of America’s daily SmartBrief newsletter, 44% of the 225 readers who responded indicated they were less concerned about tariffs than they were in the 3-4 weeks prior. Only 27% of respondents said they were more concerned. Furthermore, 66 out of 107 respondents to a follow-up poll on May 7 said they had not felt pressure to expedite work on a project due to tariff concerns. And in a May 15 poll, 57% of 374 respondents indicated some level of support for the Trump administration’s peak tariffs on China.
That doesn’t necessarily mean 100% smooth sailing for contractors, though. Dodge Construction Network Chief Economist Eric Gaus notes that while the recent reduction in trade barriers between the US and China may prevent major economic disruption, if it lasts, still does not address existing supply chain issues and uncertainty remains. Gaus predicts a modest inflation increase and says developers might delay projects due to ongoing uncertainty.
Reason for concern: Equipment theft
During the event, the American Rental Association educated visitors to its tent about equipment theft, which it says has become a $100 million annual crisis for the rental industry, with more than 360 machines disappearing each month. Many are stolen through fraudulent rentals rather than break-ins.
Thieves often pose as legitimate customers, using false identities to obtain equipment they quickly resell, leaving little chance of recovery. In response, ARA unveiled the Equipment Rental Guard program last month. The program offers ID verification tools, a national text alert system and legal support to help businesses combat theft.
Reason to celebrate: Economic impact
One of the messages AEM clearly wanted to send during its celebration of construction is how vital the equipment industry is to local and state economies. The equipment manufacturing industry in the United States supports 2.3 million jobs and contributes roughly $316 billion to the economy every year while generating $714 billion in total output and $47 billion in tax revenue, according to AEM. Its economic impact is felt nationwide, with at least 1,000 jobs supported in 44 states and major contributions concentrated in Texas, Illinois, and Wisconsin. The ripple effect of the industry’s economic activity extends through direct manufacturing, its supply chain and consumer spending from employee wages. On average, employees in the industry earn $89,700 annually.
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