The outlook for the global mining industry is strong going into 2023, aided by higher commodity prices, Denise Johnson, group president at Caterpillar , told CNBC. Palladium, copper and gold prices are hitting new highs this week as investors eye China's reopening and anticipate a recovery in demand for these commodities. "Chinese demand should recover this year, and the [Inflation Reduction Act] could lead to a surge in investment in metals-sensitive renewable energy projects in the US," wrote Jefferies global metals and mining analyst Christopher LaFemina in a note to clients this week. He is most bullish on copper in 2023. U.S. industrial names that could get a lift from miners' increased capex spend include Caterpillar and Kennametal , according to Jefferies. International names that may also benefit include Komatsu, Hitachi Construction Machinery, Weir Group, Epiroc and Sandvik, the firm noted. Mining propels growth "It is a super exciting time to be a part of the industry," said Caterpillar's Johnson at the Consumer Electronics Show in Las Vegas last Friday. "We see an intersection between electrification and automation that is really going to allow us to grow our market. In addition to that, we know many more mining companies need to produce more core commodities to serve the electrification needs of the world. And so we see mining, increasing over time…and that also allows us to grow," said Johnson. Caterpillar showcased its 777 truck at CES last week. So far, 600 of these trucks are in existence around the world. Despite a potential recession looming, the industrial giant remains focused on investing in technology. "We are definitely continuing to invest in technology. And if you look at the portfolio, it's electrification, it's digital, it's automation," Johnson said. She acknowledged that supply chain remains an issue for the entire sector. "We still have quite a few supply chain constraints. But we remain optimistic that they are continuing to slowly improve and get better over time," added Johnson. Bank of America analysts upgraded Caterpillar to a buy rating on Friday, citing China's reopening and increased infrastructure spending. However, they warned that the story will likely play out in the second half of this year. "In our view, investors are likely to look back at CAT's EPS in 2023 – a recession year – positively surprised," they wrote.