Construction equipment manufacturers anticipate overall business to close out 2011 with double-digit increases over last year in the U.S., Canada and worldwide.
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. AEM is the North American-based international trade group representing the off-road equipment manufacturing industry. Each year the association polls its construction equipment manufacturer members about anticipated sales of the machines and equipment that build and repair roads, bridges, houses, offices, schools and other infrastructure worldwide.
Respondents were asked to rank several factors affecting future business. The state of the general economy, including consumer confidence and credit availability, plus steel prices and the protracted slump in single-family housing starts, are significant negative factors influencing future sales, according to AEM survey 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.
• For 2011, overall business in the U.S. is expected to grow 18.6% compared to last year; Canadian business is forecast to increase 14.7%, and industry business to the rest of the world is anticipated to gain 14.7%.
• U.S. construction machinery business is then predicted to grow 10.8% in 2012, 9.9% in 2013, and 8.1% in 2014.
• Canadian business overall is expected to be 9.0 % higher in 2012, then increase 9.8% in 2013 and 7.3% in 2014.
• Industry business to the rest of the world is anticipated to gain 10.5% in 2012, 9.5% in 2013, and 8.2% in 2014.