Expect Slower Growth for Construction Equipment

In the just-released summary of the AEM construction equipment outlook survey: for 2011, overall business in the U.S. is expected to grow 18.6 percent compared to last year. U.S. construction machinery business is then predicted to grow 10.8 percent in 2012, 9.9 percent in 2013 and 8.1 percent in 2014.

Construction equipment manufacturers anticipate overall business to close out 2011 with double-digit increases over last year. Growth is expected to continue but at a slower pace for 2012 through 2014, according to the annual business outlook survey of the Association of Equipment Manufacturers.

Respondents were asked to rank several factors affecting future business. The state of the general economy, including consumer confidence and credit availability were negative influences. Steel prices and the protracted slump in single-family housing starts served as significant negative factors influencing future sales, according to respondents.

A key positive factor cited was the continued strength in export demand. The lack of substantial action on highway funding was cited as a negative factor, with respondents more hopeful for positive results in 2012.

‘In 2011, construction equipment manufacturing kept improving from the depths of the recession as the economy stabilized,” said AEM President Dennis Slater. “Earlier this year it looked like the economy was truly turning around. But we still have some uncertainty, in both U.S. and international markets. This is hampering stronger, more sustainable growth.”

– Courtesy of AEM