How Smart Fleets Drive Market Share in U.S. Construction
In 2022, U.S. contractors lost an estimated $30 billion to $40 billion due to labor inefficiencies. That’s not just waste. It’s margin erosion at scale, and it’s reshaping how construction firms think about productivity. With tight labor markets and rising cost pressure, one thing is clear: equipment strategy is now workforce strategy.
The president of a $1 billion civil infrastructure contractor echoes that sentiment. “We’re investing heavily in our fleet in technology, analysis and fresh equipment assets,” he says. “When labor is tight and margins are narrow, the worst thing you can have is downtime.”
And while labor productivity remains a central concern, it’s no longer the only lever. Contractors are now scrutinizing every factor that affects crew efficiency and equipment is at the top of the list.
A 2023 study found that older or poorly maintained equipment is directly linked to delays, downtime and productivity losses. In today’s environment, reliability is a differentiator.
“Our fleet is a competitive advantage,” says a manager of a 3,300-unit civil fleet. “Our competitors have larger, older fleets that are less utilized. They’re always breaking down, and operators who have joined us say they prefer being on newer, more reliable pieces of equipment.”
Reliable fleets don’t just move dirt faster, they also attract and retain operators, reduce idle time and boost project confidence. This makes the equipment investment a strategic necessity, not a discretionary spend.
The Economic Case for Investment
Despite a softening in construction growth, spending is forecast to reach $2.2 trillion this year. Margins may tighten, but the volume of work remains strong, especially across infrastructure and energy.
That means contractors will be expected to put more work in place with fewer people, and that equation only balances with smarter, more productive equipment.
The OEM Dilemma: Costs Up, Margins Down
For equipment manufacturers, especially those headquartered outside the U.S., this environment is as challenging as it is opportunistic. Global suppliers are facing:
- Rising tariffs: U.S. tariffs could cost Caterpillar up to $1.5 billion in 2025.
- Supply chain disruptions: Logistics and shipping costs rose 5.4% year over year in 2024, topping $2.6 trillion.
- Margin pressure: Material, labor and logistics volatility continues to compress earnings.
Those who want to win in the space need to solve contractor pain points, not simply get their products into the market.
What Winning OEMs Are Doing Differently
To win U.S. market share, manufacturers must rethink their go-to-market approach, focusing on how equipment can solve the two biggest contractor problems:
- Labor shortages
- Downtime risk
This means:
- Demonstrating real labor productivity gains through machine design, connectivity and ease of use.
- Offering equipment that’s reliable, quickly deployed and relatively easy to maintain.
- Supporting operator training and rapid onboarding for tech-integrated equipment.
Avoid the Home Market Trap
Contractor needs in the U.S. diverge significantly from those in Europe or Asia. For example, while hybrid and electric machinery are gaining traction abroad, adoption in U.S. markets remains limited.
OEMs must tailor offerings to match contractor expectations by prioritizing reliability, ease-of-use and serviceability over energy innovation in the near term.
Where the Work Is Going
According to FMI’s third quarter North American Engineering & Construction Outlook, infrastructure remains a bright spot. Opportunities include:
- Power, water and transportation, backed by bipartisan funding.
- Road and bridge work, with momentum building ahead of 2026 STRA-21 reauthorization.
- Freight rail, nuclear and transmission, supported by long-term modernization commitments.
- Carbon and renewables construction, moving quickly to capitalize on expiring incentives and permitting reform.
In all these segments, equipment uptime and adaptability will be non-negotiable.
Creating a Competitive Advantage for Equipment
The OEMs that succeed in the U.S. won’t just sell machines. They will provide solutions to margin pressure, labor scarcity and downtime risk.
Contractors are ready to spend, but only with partners who understand the new productivity math.
Smart fleet strategy is no longer optional. It’s your competitive advantage.