Hunter Cacich CATERPILLAR INC
Ticker (Stock) Symbol: CAT
GICS Sector: Industrials
GICS Sub Industry: Construction Machinery & Heavy Trucks
Describe the firm: Caterpillar Inc is a construction machinery and heavy truck producer and distributor. They manufacture heavy machinery and construction equipment. Some of the things they manufacture include backhoe loaders, skid steers, and bulldozers. Caterpillar is manufactured in Illinois providing many jobs to the U.S. Caterpillar’s products however are sold worldwide. That is one of the reasons they are the largest provider of heavy trucks and construction equipment.
Caterpillar products are mostly bought by large construction or building companies. However Caterpillar does manufacture some smaller versions of their products to allow them to dip into the average consumer market as well. Most of their sales still …show more content…
This means that if a government is not investing in new construction such as new building or roads then Caterpillar’s business will suffer. These conditions can cause Caterpillar’s short run profits to fall, but the world will continue to grow causing Caterpillar’s profits in the long run to remain relatively stable. Caterpillar also depends heavily on the price of materials needed to build their products. They use a significant amount of steel due to all of the heavy equipment that they manufacture. If the prices of these materials increase they can cause a spike in cost for Caterpillar causing them to not gain as much money while producing their products. Another issue Caterpillar could face is if the materials they need are not delivered on time causing a delay on production. Both of these factors could cause a hit on Caterpillar’s short run
Ticker (Stock) Symbol: CAT
GICS Sector: Industrials
GICS Sub Industry: Construction Machinery & Heavy Trucks
Describe the firm: Caterpillar Inc is a construction machinery and heavy truck producer and distributor. They manufacture heavy machinery and construction equipment. Some of the things they manufacture include backhoe loaders, skid steers, and bulldozers. Caterpillar is manufactured in Illinois providing many jobs to the U.S. Caterpillar’s products however are sold worldwide. That is one of the reasons they are the largest provider of heavy trucks and construction equipment.
Caterpillar products are mostly bought by large construction or building companies. However Caterpillar does manufacture some smaller versions of their products to allow them to dip into the average consumer market as well. Most of their sales still …show more content…
This means that if a government is not investing in new construction such as new building or roads then Caterpillar’s business will suffer. These conditions can cause Caterpillar’s short run profits to fall, but the world will continue to grow causing Caterpillar’s profits in the long run to remain relatively stable. Caterpillar also depends heavily on the price of materials needed to build their products. They use a significant amount of steel due to all of the heavy equipment that they manufacture. If the prices of these materials increase they can cause a spike in cost for Caterpillar causing them to not gain as much money while producing their products. Another issue Caterpillar could face is if the materials they need are not delivered on time causing a delay on production. Both of these factors could cause a hit on Caterpillar’s short run