Caterpillar (CAT), Joy Global (JOYG) Should be Huge Beneficiaries of

When Vale (NYSE:VALE) recently said the global mining industry could spend as high as $120 billion to expand capacity in 2011, it raised a few eyebrows, but company off one of the best mining years in history (the best if you ask Vale), most are taking their projections seriously. If accurate, it should be a huge boost to equipment makers
like Caterpillar (CAT) and Joy Global (JOYG) in the U.S.

Whether it will ultimately benefit the major miners like BHP Billiton (NYSE:BHP), Vale or Rio Tinto (NYSE:RIO) remains to be seen, as that will for the most part depend upon the amount of money China decides to spend.

Although there is no indication China has lost its will to spend, there is the very real threat of inflation there, which could cause some difficulties, although the timing of when that could happen is anyone's guess, and so the assumption is 2011 will be another big spending year for the middle kingdom.

Consequently, Caterpillar (CAT) and Joy Global (JOYG) should experience an extraordinary year, being the major providers of mining equipment in America.

They won't be affected by China as much as the miners may, as they're convinced China's buying, and with that in mind, they're definitely going to be buying equipment to meet that perceived demand.