Mining Equipment Demand to Rise in 2012 (CAT, JOY, DE)

Demand for mining equipment and machinery is expected to grow by 8.5% in 2012 to a total of $92 billion. This should give a boost to heavy equipment makers like Caterpillar Inc. (NYSE: CAT), Joy Global Inc. (NYSE: JOY), and Deere & Co. (NYSE: DE).

According to a report in International Mining:

Demand will be stimulated by a pickup in mining output growth as global manufacturing activity and construction expenditures accelerate in a generally favourable economic climate. Commodity prices are also expected to remain high by historical standards, contributing to a rise in resource exploration and development activity, and associated mining machinery sales.

Demand from China is expected to account for 57% of all new mining equipment sold through 2015.