In this video, MOtley Fool industrials analyst Blake Bos outlines what he sees as two interrelated risks facing Caterpillar (NYSE:CAT) today. First, Caterpillar is vulnerable to macroeconomics; it supplies equipment to cyclical industries and must anticipate slowdowns and upswings. Of late, it has not been particularly good at anticipating slowdowns, leaving the company with excess inventory. Second, much of Caterpillar's growth prospects are overseas, particularly in China and India, but this leaves Caterpillar vulnerable to currency fluctuations. Caterpillar also faces formidable competition from such companies as Komatsu that won't go away quietly in these markets.
May 16, 2013 at 4:00PM
The Motley Fool's industrials analyst, I specialize in 3-D printing and also do my best to stay up-to-date in the fields of robotics and oceanic transportation. Follow me on Twitter, Google+, and/or Facebook below for the most important 3-D printing industry developments and other great stories.
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