Introduction

The construction equipment sector is the backbone of global infrastructure development — producing excavators, bulldozers, loaders, cranes, and more. The global market is projected to surpass $200 billion by 2030 (Grand View Research, 2025).

Yet manufacturers face a forecasting crisis. Long lead times and cyclical demand make it extremely difficult to align production with actual market needs. According to McKinsey (2024), forecast deviation in construction equipment averages 25% annually, leading to inventory pileups or missed sales opportunities.

Salesforce Manufacturing Cloud addresses this problem by unifying dealer forecasts, integrating with ERP systems, and using AI-powered insights to deliver accurate, reliable demand predictions.

The Construction Equipment Manufacturing Landscape

• Segments: Earthmoving equipment, material handling, road construction machines, cranes.
• Sales Model: Predominantly through dealer/distributor networks.
• Customers: Governments, infrastructure contractors, real estate developers, mining companies.
• Revenue Mix: New machinery + service contracts, parts, and financing.

👉 Accurate forecasting is the foundation of profitable, predictable growth.

Why Forecast Accuracy Matters in Heavy Equipment

• Production Planning → Factories must align with real demand to avoid costly idle capacity.
• Dealer Trust → Meeting commitments builds confidence and loyalty.
• Financial Predictability → Accurate forecasts stabilize cash flow and shareholder expectations.
• Resilience → Better preparedness for economic swings in infrastructure spending.

Challenges in Forecasting Construction Equipment Demand

1. Cyclical Demand & Economic Sensitivity

• Demand tied to infrastructure budgets, real estate markets, and commodity cycles.
• Economic downturns create sharp demand drops.

2. Dealer-Driven Sales Models

• OEMs rely on independent dealers across regions.
• Forecasts are often outdated or inaccurate.

3. Long Production Lead Times

• Machines can take months to build.
• Forecast errors cascade into late deliveries or overstock.

4. Seasonal & Regional Variations

• Infrastructure projects vary across geographies and climates.
• Seasonal shifts make demand unpredictable.

5. Data Silos Between Sales, Dealers & Production

• Sales tracked in CRM, operations in ERP, dealer forecasts in spreadsheets.
• No single version of the truth.

How Salesforce Manufacturing Cloud Improves Forecast Accuracy

1. Account-Based Forecasting for Dealer Precision

• Forecast demand at the dealer/account level.
• Improves accuracy by 20–30% compared to aggregate forecasts.

2. Real-Time Dealer Demand Visibility

• Dealers update forecasts dynamically in Salesforce portals.
• OEMs instantly see demand changes and adjust production.

3. ERP & Production Planning Integration

• Connects Salesforce with ERP/manufacturing systems.
• Ensures factory schedules align with live demand.

4. AI-Powered Demand Prediction

• Einstein AI integrates market, infrastructure, and commodity data.
• Predicts demand shifts before they impact production.

5. Dashboards for Executive Transparency

• Real-time dashboards display:
  • Dealer performance
  • Demand vs. actual production
  • Forecast accuracy trendlines

Case Study: Forecast Transformation in Construction Equipment OEM

A global excavator OEM faced:

• • Forecast deviation of 28% annually.
  • Excess inventory worth $100M in warehouses.

After Salesforce:

• Forecast accuracy improved by 25%.
• Inventory costs reduced by 15%.
• On-time dealer delivery improved by 20%.

The Future of Forecasting in Heavy Equipment

• Digital Twins for Forecasting → Simulate machine demand vs. production capacity.
• Blockchain Dealer Commitments → Tamper-proof demand signals.
• AI Scenario Planning → Model budget changes, economic downturns, and commodity shocks.
• Sustainability Forecasting → Align production with ESG reporting.

Conclusion

Forecasting in construction equipment is complex — but solvable. Salesforce Manufacturing Cloud enables:

• Account-level, accurate forecasting
• Dealer-driven real-time visibility
• ERP–production alignment
• AI-powered predictive demand
• Transparent dashboards for leadership

For OEMs, Salesforce turns forecasting from a guess into a growth strategy.

🏗️ Ready to drive forecast accuracy in construction equipment?

👉 [Book a Manufacturing Cloud Strategy Session with Perigeon]