Construction equipment manufacturers expect overall industry business to turn around slightly in 2010 following double-digit expected year-end 2009 declines in the minus-40-percent range for the United States and minus-30-percent range for Canada and other worldwide sectors, according to the annual "outlook" survey of the Association of Equipment Manufacturers (AEM).
Survey respondents anticipate stronger growth going into 2011, but not enough to erase the severe 2009 business and job losses. Business in 2012 is then expected to level off.
"Even with a modest rebound in the next few years, the construction equipment industry will still be down by double digits, and there will still be double-digit industry unemployment," stated AEM President Dennis Slater. "This is not surprising given the continued instability of the housing market and no long-term commitment to America's roads, rail, airports, water distribution and ports to move people and goods efficiently and safely, and to compete effectively in the global marketplace."
Construction machinery business in the United States was predicted to end 2009 with a 43-percent overall drop and then increase 5% in 2010, followed by gains of 15% in 2011 and 14% in 2012.
For Canada, 2009 business was anticipated to decrease 34-percent overall with a 2010 increase of 7%, a 14% increase in 2011 and 11% increase in 2012. Industry business to the rest of the world was expected to close out 2009 with losses of 34%, followed by a 2010 gain of 7% and growth of 13% in 2011 and again in 2012.