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boob123456789hiding in the hinterlands•

Catepillar made the move into computerized equipment. Additionally if you try to code it yourself to fix anything you void the warranty. They basically made it where the owner cannot service it anymore without voiding the warranty or getting sued to intellectual rights crap. That is why Catepillar is doing crappy.

However, that said, the lost business is not going into other competitors so much. People still buy tractors, but only used ones now. The used tractor market has skyrocketed in price. Locally a used older tractor costs more than many newer models. Why? It's serviceable.

It's a selling point for the older tractors. Look into after market parts, that's where the money is going.

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stumoOP•

While this article points to just North American sales, this article indicates pretty much the same dismal sales on a global basis.

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pasttense•

There are two quite different explanations available:

  1. Global decline in demand for these type products.

  2. Caterpillar is losing market share to its competitors.

We just don't know unless we see information about sales by these competitors.

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stumoOP•

Global decline in demand for these type products.

Which occurs when lowered economic activity results in less purchases of heavy industrial equipment.

Caterpillar is losing market share to its competitors.

Feel free to check.

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mindlessrabble•

Could it be that projects are becoming more small scale? For example, you can now grow more food in a warehouse or large greenhouse than by plowing up 1,000's of acres of land. You don't need big tracked vehicles for that.

Same for construction projects. Don't know if that has anything to do with it.

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stumoOP•

No, not really. Caterpillar makes heavy earth-moving and industrial equipment. It's often used as a measure of how well the economy is doing, in that large-scale projects requiring their equipment are indicative of a healthy economy. Their sales often plummet during economic hard times.

For example, you can now grow more food in a warehouse or large greenhouse than by plowing up 1,000's of acres of land.

You can't, not for the majority of staple crops. Not for the same price and using the same amount of labor.

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