Interestingly, despite robust construction markets supported by infrastructure investments, key players in the equipment industry are feeling the pinch. John Deere recently reported a 38% plunge in its construction and forestry segment sales, citing that “lowering shipment volumes was a deliberate strategy to manage inventory”.
Caterpillar echoed similar concerns, as sales and revenues dipped 24.2% for North American construction sales the first quarter of 2025, attributing the outlook to softening demand and tariffs. Caterpillar said with tariffs, "before any additional mitigation actions, and with negative economic growth in the second half of 2025," revenue is seen in line with the prior expectation of a slight decline.
Broader trends identified by PowerProgress.com, include reports that this year’s anticipated 11% drop in sales “reflects not only the ongoing return to normal sales volumes” but also lingering economic pressures. VMAC's SOTI report underscores a wider pullback in investments for light-duty and mobile equipment segments, even as heavy construction continues to press forward.
Ken Simonson, chief economist at the Associated General Contractors of America, reports that construction costs have continued to increase at a concerning rate, especially with the recently implemented global tariffs. Simonson notes that, “Input costs for construction have gone up 40%, much more than the 24% that consumers have rightly complained about,” Simonson said. “In fact, for some materials, it's much more. Copper and brass mill shapes, that price has gone up 69%. For steel mill products, 54%, and for gypsum building materials, 52%. And these are based on prices that were collected around March 11, before the tariffs have taken effect.”
Amid the general downturn, certain sectors are defying the trend. The used equipment market remains strong, reflecting both tightened capital availability and a growing interest in sustainable procurement. The electric heavy equipment segment is another bright spot, thanks to tightening emissions regulations and government subsidies. Compact equipment also continues to show long-term promise, particularly in North America, where unit sales are expected to climb steadily due to ongoing infrastructure projects and warehouse development.
VMAC emphasizes a culture of continuous improvement born from a lean mindset designed to translate advanced product innovation into real advantages for users. As Kate Zabriskie from digdifferent.com writes, “Great customers are great customers, and they’re gong to be somebody’s customer. Why not make decisions that will make you the provider of choice?”
VMAC backs every rotary‑screw compressor with a limited lifetime warranty and goes the extra mile by providing service kits, oil SDS sheets, and parts guides. Dealers and end users rely on structured warranty procedures and genuine replacement parts to preserve warranty coverage and performance, highlighting that customer service after a purchase is a priority. Learn more: https://www.vmacair.com/support/warranty
This dedication is reflected in a vast dealer network with almost 350 global partners, positioned to help customers choose, install, and maintain precise configurations for their industries. As Northern Auto Electric Ltd writes, “We really appreciate how VMAC works together with us. It is a pleasure being a dealer for VMAC compared to a lot of other companies we deal with. Keep up the good work.”
Whether you’re a fleet manager in utilities, a mobile mechanic, or operating in mining and forestry, VMAC ensures you're listened to, your job is understood, and your equipment matches your real-world applications, making you a partner, not just a sale. Find a VMAC dealer now: https://www.vmacair.com/support/find-a-dealer
The global equipment market is stabilizing after a historic surge. While some manufacturers are experiencing year-over-year declines, underlying demand in construction, especially in public infrastructure and utility sectors, remains resilient. For companies like VMAC, who have gained market share and realized considerable growth each year, focusing on innovation and customer satisfaction has enabled it to maintain a broad portfolio of products serving diverse business needs.