Market Analysis: U.S. construction equipment exports down 25 per cent
Milwaukee – Exports of U.S.-made construction equipment fell 25 per cent overall for the first three quarters of 2016 compared to 2015 January – September, for a total $8.2 billion shipped to global markets.
All world regions were in decline from single-digit drops for Europe and Central America to decreases in the 50-per cent range for Africa and South America, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data it uses in global market reports for members.
AEM is the North American-based international business group representing the off-road equipment manufacturing industry.
Exports by World Region
January-September 2016 U.S. construction equipment exports by major world regions compared to January-September 2015:
– Canada dropped 21 percent, for a total $3.5 billion
– Europe declined 6 percent, for a total $1.2 billion
– Central America fell 9 percent, for a total $1.0 billion
– Asia decreased 30 percent, for a total $972 million
– South America declined 49 percent, for a total $733 million
– Australia/Oceania fell 36 percent to $427 million
– Africa declined 51 percent to $317 million
AEM Market Overview
AEM’s Benjamin Duyck, director of market intelligence, provides some insights: “For the past 15 quarters U.S. exports of construction equipment declined year over year and in the third quarter of 2016, that trend remains unchanged. A key factor affecting the reduction in exports is most likely due to the strong dollar making U.S. manufacturers less competitive in the global marketplace. Of course, the strong currency is a problem that plagues all U.S. exports. Some international markets are still viable; exports are up year over year to Belgium and Germany, for example.
“Our expectations for the fourth quarter remain subdued as the U.S. dollar is experiencing its longest rally in 16 years. With the global economic malaise, the slowdown in emerging markets and the negative interest rates seen in several economies’ bond markets, investment is flowing to the U.S. and U.S. stocks, driving up demand for our dollar, inadvertently affecting our competitiveness abroad.”
Exports by Top 10 Countries
The top countries buying the most U.S.-made construction machinery during the first three quarters of 2016 (by dollar volume) were:
Canada – $3.5 billion, down 21 per cent
Mexico – $831 million, down 9 per cent
Australia – $392 million, down 38 per cent
Belgium – $294 million, up 33 per cent
Germany – $202 million, up 24 per cent
China – $190 million, down 8 per cent
Peru – $181 million, down 30 per cent
Chile – $165 million, down 60 per cent
Japan – $147 million, up 6 per cent
Brazil – $145 million, down 61 per cent
For more information, visit www.aem.org.
Source: Association of Equipment Manufacturers (AEM)