Caterpillar Inc (NYSE:CAT) more than just crawling along in generator space

Posted by Nathan Alexander August 14, 2013 0 Comment 1596 views


Market watchers and analysts have projected that the global diesel gensets market will rise at a CAGR of 4.12% from 2012 to 2016. The energy deficit has been growing at a steady rate and this is one of the primary factors for growth in this market. In addition to the growth mentioned above, the market has also seen new-generation generators being developed. Though this is a good sign for companies like Caterpillar Inc (NYSE:CAT) that dominate this space, there is highly intense vendor competition.

The competitors

The other two dominants in this industry are Kohler Co and Cummins Inc. not only are they peers but they also pose to be very formidable rivals and competitors. At the moment, all the vendors in this market are involved in the development of next-generation generators. They are all trying to create differentiators in their respective products to gain an edge and be one up on the competition.

For instance, some of the vendors are developing generators that have comprehensive monitoring and control systems. These systems can go a long way in enhancing the overall-efficiency of the nest generation generators. In addition to this, the vendors also have to ensure that the generators that they provide are user-friendly. This is important as not all users possess the technical knowledge that is required to operate them.

The company
Caterpillar Inc (NYSE:CAT) is a company that manufactures mining and construction equipment, natural gas and diesel engines. In addition it also manufactures a range of diesel-electric locomotives and gas turbines. The company operates in two different segments- Power Systems and Machinery and Financial Products.

The Machinery and Power Systems segment represents a combination of Construction Industries, Power Systems, Resource Industries, and All the Other segments as well as related corporate eliminations and items. The Financial Products segment includes Caterpillar Insurance Holdings Inc and Cat Financial.


About Nathan Alexander

Nathan Alexander holds bachelor’s degrees in Journalism and European Studies from Boston University. Nathan reports round up the day’s business and financial market news and include keynote interviews with major business players and updates on Asian, European and US stock markets. He has interviewed heads of leading European banking institutions such as European Central Bank President Jean-Claude Trichet and HSBC Chairman Stephen Green, and CEOs from the business world including Microsoft founder Bill Gates, Virgin Chairman Sir Richard Branson and former Porsche President and CEO Dr Wendelin Wiedeking.

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