A new report from the Association of Equipment Manufacturers (AEM) says exports of U.S.-made construction equipment declined 17% for the first half of 2015 compared to the first half of 2014, with a total of $7.4 billion shipped to global markets.
All world regions experienced declines, led by Africa, according to AEM. The AEM equipment manufacturing trade group cited U.S. Department of Commerce data it uses in global market reports for members.
Exports by World Region
January-June 2015 U.S. construction equipment exports by major world regions compared to January-June 2014:
Canada dropped 12%, for a total $3.1 billion
South America declined 23%, for a total $990 million
Asia decreased 11%, for a total $923 million
Europe dropped 14%, for a total $878 million
Central America fell 21%, for a total $748 million
Australia/Oceania declined 10%, to $417 million
Africa decreased 44%, to $385 million
AEM Market Analysis Overview
AEM’s Benjamin Duyck, director of market intelligence, provides some insights:
The second quarter of 2015 marked the 10th consecutive quarter that U.S. construction equipment exports experienced year over year declines and the 7th consecutive quarter that imports rose. While exports decreased for every major region, the only equipment category we noticed some export growth in were generator sets.
While the U.S. market remains stable overall (there are some areas affected by the lower oil prices), the U.S. trade balance for our industry continues to slump. It is hard to pinpoint the exact cause of this situation, as there are many issues at play here.
First of all, a stronger U.S. dollar is making U.S. manufacturers less competitive. In September 2015, the Broad Weighted Trade Index for the US Dollar, provided to us by the Board of Governors of the Federal Reserve, had grown 18.2% compared to January 2014 and 21.5% compared to January 2013.
A second issue is the global deterioration of demand due to cyclical and structural issues. As investment is flowing from the emerging markets back to the developed western nations, demand for construction equipment travels with it. While not all emerging markets are hit evenly, we can expect the current Chinese downturn to have effect on our markets also. Naturally, shifts in investments allow for growth elsewhere.
Exports by Top 10 Countries
The top countries buying the most U.S.-made construction machinery during the first half of 2015 (by dollar volume) were:
Canada - $3.1 billion, down 12%
Mexico - $602 million, down 22%
Australia - $387 million, down 9%
Chile - $273 million, down 9%
Brazil - $268 million, down 25%
South Africa - $206 million, down 48%
Peru - $192 million, down 31%
Belgium - $147 million, down 30%
China - $140 million, down 26%
Saudi Arabia - $124 million, down 40%
Economic Resources Available
AEM’s Construction Equipment Global Markets Export report and select other reports are available to the public through the AEM store (www.safetymaterials.org).
AEM members may access the global markets export report on the AEM website (www.aem.org) in Market Intelligence section.
Custom detailing exports by 10 Digit HS code to various countries worldwide, as well as an overview of export market opportunities by product, are available to members on request. For more information, contact AEM’s Benjamin Duyck, director of market intelligence (bduyck@aem.org).
Lift & Access is part of the Catalyst Communications Network publication family.
