Exports of U.S.-made construction equipment declined 25 percent overall in the first quarter of 2016 compared to the first quarter of 2015, with a total of $2.7 billion shipped to global markets.
The sharpest declines were in Africa and South America, with each continent dropping nearly 50 percent. Exports to Central America were stable, and shipments to Europe increased slightly. The report was put together by the Association of Equipment Manufacturers, citing U.S. Department of Commerce data.
The leading regions in volume were:
- Canada $1.1 billion, a 28-percent decline;
- Europe $455 billion, a 5-percent year-over-year increase;
- Central America $378 million, a 1-percent drop;
- Asia $290 million, a 37-percent plunge;
- South America $258 million, a 47-percent fall;
- Australia/Oceania, $162 million, a 10-percent slide;
- Africa $107 million, a 49-percent thud.
The first quarter was the 13th consecutive quarter that U.S. construction equipment exports declined, said AEM’s Benjamin Duyck, director of market intelligence. The continuing downturn is linked to the strong U.S. dollar, reducing U.S. competitiveness by making U.S. equipment relatively more expensive. The construction industry is expected to continue to grow by 3.4 percent globally in 2016, according to Business Monitor International. About half that growth is expected from the North American markets.
The most impactful decreases in exports are in earthmoving, which declined 35 percent. The lifting equipment segment increased slightly, driven primarily by self-propelled aerial work platforms.
By country, the following were the 10 leading buyers of U.S. made construction equipment:
- Canada, $1.1 billion, down 28 percent;
- Mexico, $310 million, down .01 percent;
- Australia, $148 million, down 10 percent;
- Belgium, $101 million, a 38-percent increase;
- Peru, $85 million, down 17 percent;
- Germany, $74 million, up 58 percent;
- Chile, $60 million, down 48 percent;
- China, $49 million, down 31 percent;
- United Kingdom, $47 million, up 8 percent;
- South Africa, $40 million, down 65 percent.
