MILWAUKEE — Construction machinery manufacturing industry analysts expect overall business to remain slow through the end of 2003, but anticipate 2004 growth in the 3 percent to 5 percent range, according to an annual industry forecast of the Association of Equipment Manufacturers.

Manufacturers participating in the annual AEM survey expect construction equipment business in the United States to close out 2003 with a 0.4 percent loss, followed by 2004 growth of 5.5 percent. Canadian construction equipment shipments are predicted to grow 1 percent by the end of 2003, followed by a 3.7 percent increase in 2004. Other worldwide business is expected to grow 0.3 percent in 2003 and 3.4 percent in 2004.

AEM polls manufacturers on anticipated business conditions. This year's survey covers 63 whole goods categories and 17 types of attachments and components.

“For our business segment in particular, our customers' fleets are aging and need replacement,” said Ron DeFeo, 2003 AEM chairman and chairman/CEO of Terex Corp., Westport, Conn. “Also, the federal government needs to pass highway spending legislation, and this should boost equipment sales.”

Rental markets will continue to account for an increasing share of equipment sales, the survey said. Earthmoving equipment sales are expected to increase 7.2 percent in the U.S. in 2004, with light equipment jumping 5.1 percent, lifting equipment 2.4 percent, and a 7.1 percent jump for bituminous machinery, including cold planers, asphalt paving machines, rollers, soil stabilizers and asphalt plants.