Top U.S. States with the Highest Demand for Construction Equipment

The construction equipment market in the United States is expanding rapidly, supported by strong infrastructure, commercial growth, and residential construction in a number of states. Demand for machines exists throughout the country, but certain states provide the highest volume of new equipment purchases, especially financed units.

U.S. Construction Spending, Jun-July 2025 ($ Billion)

 

 

 

 

 

 

 

 

 

 

 

Source: U.S. Census Bureau – Monthly Construction Spending Report, September 2, 2025

The top states of Texas, Florida, Georgia, North Carolina, and California are driven by a combination of population growth, industrial developments, and urbanisation. The combination of these long-term drivers is producing equipment sales in the highest volume in these areas, and they are increasing the demand for heavy equipment and compact equipment such as excavators, loaders, and skid steers. Financing from lenders and equipment dealers also supports equipment purchases, demonstrating the contractor and developer’s intention of using credit for large projects.

1. TEXAS

Texas has emerged as one of the largest states in the U.S. for construction equipment sales as a result of its high investment, rapid urbanisation, and infrastructure spending.

Texas construction equipment adoption is driven by the substantial amount and diversity of construction activity. Texas often ranks in the top 3 to 5 in the U.S. for commercial construction spending, with a total of about $90 billion per year. The projects in the commercial space include not only manufacturing facilities, semiconductor plants, logistics centres, but also data centres, and there is continual growth in energy and clean technology. The strong growth in this industry leads to the demand for heavy equipment, excavators, loaders, cranes, compact track equipment and others. The diversity and volume of activity create a demand for both heavy equipment jobs and compact track jobs, which also support continued growth through some industrial megaprojects and residential or commercial building initiatives.

Commercial and Industrial Spend: Texas ranks first in the nation for commercial construction spend, roughly $90 billion per year, sparking demand for machinery.

• Megaprojects and Infrastructure Growth: The expanding manufacturing and energy, logistics and clean-tech sectors require considerable amounts of heavy equipment.
• Population Growth and Urban Sprawl: The population growth of new residents has generated housing, transportation, and utilities demand that is ultimately increasing construction.
• Overall Preference Toward Financing: Texas contractors are one of a few states ranked as preferred to lease or finance when considering all reporting for purchase financing – meaning using the equipment lease is overall more preferred than a capital purchase.

When factoring in population growth, demand is worse. Cities in Texas, such as Austin, Dallas, Houston, and San Antonio, are growing fast, keeping up demand for residential and infrastructure work. When faced with these demands, contractors can use many different types of equipment. Contractors need all sorts of equipment, from an excavator and loader to a compact track loader, to meet the demands. Understanding financing equipment allows contractors to remain readily liquid and, if the planned financing is suitable, allows growth, reinforcing the support of Texas.

Challenges and Risks

• Dependent on Policies and Incentives: A normal, state, or federal incentive affects countless large projects. If policies change, the development scale of future demand may alter.
• Unexpressed Cash Purchases: Reports generally only capture financed transactions, suggesting that Texas’s actual demand is potentially much larger than any provided figure.

Overall, Texas’s demand for construction equipment remains unmatched in the country because of its unique combination of commercial spending, population-driven infrastructure needs, and financing capability. With billions worth of commercial projects recently announced, coupled with continued urbanization, Texas has the opportunity to sustain its number one standing.

2. FLORIDA

Florida ranks as the second-largest market for construction equipment materials in the United States, after Texas. In 2024, Florida also ranked among the highest states for financed volumes of new construction equipment purchases, demonstrating the size of its housing boom, infrastructure, and commercial construction development. Florida is regularly listed among the top states for the demand for construction machines, including compact track loaders and excavators, and the skid steer sales volume is high.

The construction demand in Florida is driven mainly by population growth, coastal development, and a large commitment of infrastructure spending. There is a strong demand in the residential and commercial markets, and housing development has seen a large amount of activity related to highway work, resiliency infrastructure, and large-scale private developments. Florida’s city centres of Miami, Orlando, and Tampa Bay have very high populations and with their deep corridors of urbanisation, driving further demand for heavy machinery.

Notable characteristics of construction equipment demand in Florida include:

• Increased demand for housing due to population growth – as Florida leads the nation as one of the fastest-growing states, and subsequently, housing concepts and residential construction have expanded.
• Infrastructure and transportation projects funded – Florida has many road and airport construction and coastal defence systems projects funded by the state and federal governments. Florida also has a high density of construction due to population growth, which puts pressure on transportation systems from traffic, tourists, or climate-related risks.
• Commercial development – Miami, Tampa, and Orlando have been experiencing the strongest market activity for the construction of retail, hospitality, and logistics, all of which have large needs for construction material.

3. GEORGIA

Georgia has become one of the fastest-growing markets for construction equipment in the United States. In 2024, it was consistently ranked among the top states for financed purchases of new equipment, along with Texas, Florida, North Carolina, and California. Georgia has a particularly strong demand for compact machines, such as skid steers, mini excavators, and track loaders, as it combines urban development, logistics infrastructure, and residential construction.

The growth in construction in Georgia is fueled by its strategic role as a logistics and industrial centre in the Southeast. Atlanta is rapidly expanding, coupled with significant investments in warehouses, distribution centres, manufacturing facilities and transportation networks, which has resulted in consistently strong demand for both heavy and compact equipment. In addition to urban development, various statewide infrastructure projects, such as highway projects and airport expansions, are contributing to Georgia’s increased need for construction machinery.

Major Drivers of Equipment Demand in Georgia

• Logistics and industrial expansion. Georgia is one of the preferred locations for e-commerce and distribution hubs. Warehouses and industrial facilities need heavy amounts of site preparation, which increases the demand for loaders, excavators and earthmoving machines.
• Housing demand due to population growth. Rapid suburban expansion around areas of Atlanta and other urban areas is increasing the demand for residential construction and ultimately requiring more construction equipment.
• Infrastructure investments. State and federal investments in highways, bridges, and airport projects have increased the need for equipment to be used in various sectors.
• Compact equipment demand. Georgia’s unique mix of urban and suburban construction has created strong demand for compact track loaders and mini excavators, which accounted for a high percentage of the national sales for compact equipment in 2024.

Various risks:

• Financing pressure: Like some other high-growth states, Georgia’s demand for equipment closely reflects financing trends. Higher rates have created tighter credit conditions in 2024, which may temper purchasing in the future.
• Concentration in logistics and urban corridors: Georgia’s heavy dependence on the metro Atlanta area and its logistics sectors means that demand could falter if industrial activity declines.
• Labour and cost pressures: Increased labour costs in construction throughout Georgia could slow the schedule of work, indirectly affecting the turnover of equipment.

4. NORTH CAROLINA

North Carolina ranks as one of the best states in the country for financed purchases of construction equipment. In 2024, it was noted as one of the leading states, along with Texas, Florida, Georgia, and California, to have high volumes of newly financed units. North Carolina highlights a strong market for both compact equipment and heavier equipment.

The demand in North Carolina is influenced by a convergence of multiple market factors. The rapid urban growth in regions like the Research Triangle (Raleigh, Durham, Chapel Hill), Charlotte, and the Outer Banks has added stress to infrastructure, utilities, and housing. Major development projects for transportation and commercial building, and large industrial sites have increasing needs for earthmoving machines, grading machines, utility machines and paving machines. For example, North Carolina dealers reported sales of machines increase when major contracts for highways or bridges are awarded.

Another driver is the momentum resulting from regional infrastructure investment. Dealers in the Southeast, for example, report that demand is stronger in states with more road and bridge projects in process. In North Carolina, dealers like Triangle Equipment Group (which operates in Morrisville, Garner, and Wilmington) are proactively providing financing and credit to contractors, thus reducing the barriers to purchasing machines.

Key Drivers in North Carolina:

• Largest urban and suburban growth in multiple metro areas
• State and federal infrastructure and transportation projects
• Actively participating in equipment dealer networks