Why bigger is not always better in construction equipment

01 May 2026

Detailed view of a construction excavator with transparent overlays exposing the complex hydraulic circuits and inner workings of this heavy machinery used for earthmoving demolition. Image: thanarak via AdobeStock

In mature industries, scale is expected to deliver better margins, faster growth and greater stability. Yet, as fresh analysis from abcg consultant Alan Berger suggests, when it comes to construction equipment, those assumptions do not hold – raising doubts about whether a major consolidation wave is really on the horizon.

On paper, the construction equipment sector should be consolidating. It is a mature-but-growing industry, shaped by the sort of commercial and technological pressures that typically reward scale and gradually narrow the field. Yet the reality is more complicated. For all the headline deals, strategic repositioning and product evolution of the…

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