Caterpillar Faces Competition From Komatsu

March 17, 2015

Caterpillar is facing opposition from Komatsu Ltd., its largest competitor, due to fluctuating global currencies in Komatsu's favor. 

Japan’s Komatsu is currently benefitting from the 20 percent decline in the yen against the dollar starting in July 2014. The plunge is helping it compete globally on construction equipment prices according to Caterpillar’s Vice President Mike DeWalt.

The competition between Caterpillar and Komatsu illustrates how shifts in exchange rates can affect company sales. 

Caterpillar’s has 53 percent of its assets located in the U.S., compared to 63 percent of Komatsu property located in Japan.

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