US Reshoring Gains Momentum for Construction Equipment

In the wake of escalating trade tensions, heavy equipment manufacturers across the construction, agriculture and manufacturing sectors are evaluating ways to shift operations back to the United States. Similar to tech giants responding to tariffs, construction equipment manufacturers are investing in domestic production to secure supply chains and mitigate costs.

Construction Heavy Equipment: Investments in US Factories Gain Momentum

The construction sector, reliant on robust machinery like excavators and loaders, is seeing manufacturers publicly commit to US-based production amid tariff uncertainties. Caterpillar, a leading name in heavy equipment with $54.7 billion in 2024 revenue, continues to emphasize its extensive US operations, which include over 500 global facilities but with a strong domestic focus. This aligns with broader reshoring trends driven by the Infrastructure Investment and Jobs Act (IIJA), which prioritizes American-made equipment for projects.

GE Aerospace, while not exclusively in construction, announced a nearly $1 billion investment in US factories and supply chains for 2025, targeting innovative parts and materials. “Investing in manufacturing and innovation is more critical than ever for the future of our industry and the communities where we operate,” stated H. Lawrence Culp Jr., Chairman and CEO of GE Aerospace.

Siemens also opened a $190 million Texas manufacturing hub, expanding facilities to support electrical and energy infrastructure, which indirectly benefits construction equipment production. These efforts reflect a strategic pivot: by localizing production, manufacturers aim to evade tariffs and capitalize on domestic demand, projected to grow with IIJA-funded infrastructure projects.