U.S. Construction Equipment: Powering Jobs and Dollars

 

By incorporating the manufacturing, dealer/wholesale distribution and maintenance/repair segments, the total construction equipment industry is directly responsible for over $139.3 billion ($31.0 billion from manufacturing, $62.2 billion from dealer/wholesale merchandising, and 46.1 billion in maintenance and repair). Courtesy HIS Global Insight

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There is a strong relationship between construction investment and construction equipment sales. Generally, when investment in structures and infrastructure has been strong, so have the sales of construction equipment. During lean investment years, sales of construction equipment have plunged. A combination of sound monetary policy, prudent fiscal investments and strong business and consumer confidence is required to foster a strong construction environment. Doing this will also maintain a healthy construction equipment sector.

The profitability and health of construction equipment goes hand-in-hand with the vitality of the landscape industry. The U.S. construction equipment industry is a flagship sector of the U.S. economy, but its contribution to the economy is not well understood. The U.S. construction equipment industry is more important than just the manufacturing of the large machines seen on job sites across the nation.

In addition to construction equipment manufacturing, the industry has a broad and extensive dealer/wholesale merchandising system, and these machines require considerable maintenance and upkeep to remain productive in the field. Therefore, the total construction sector is actually comprised of three major industries: construction equipment manufacturing, construction machinery and equipment merchant wholesalers and construction machinery and equipment maintenance and repair.

These indirect effects are estimated to add another $104.0 billion ($38.6 billion from manufacturing, $33.3 billion from dealer/wholesale merchandising and $32.1 billion from maintenance and repair services), for a total revenue steam that is $243.3 billion. This is about the entire gross state product (GSP) of Connecticut.

- Courtesy HIS Global Insight