MILWAUKEE, Wis. — Construction equipment manufacturers expect overall industry business to continue its downward trend through year-end 2001 and show little to no growth in 2002, according to the Construction Industry Manufacturers Association's annual forecast.
Manufacturers expect business to drop 12.8 percent in 2001, and record 0.5 percent growth for 2002. Construction machinery shipments for Canada are expected to drop 11.3 percent by year-end 2001, and decline 0.7 percent in 2002. Worldwide business is anticipated to decline 2.7 percent in 2001, with a 1.1 percent decrease in 2002. Survey responses were completed before the Sept. 11 terrorist attacks, thus making lower estimates likely over the next few months.
“Construction equipment manufacturers have been affected by the general economic slowdown, after enjoying record growth for eight straight years,” said Bob Fien, 2001 CIMA chairman and CEO of Stone Construction Equipment, Honeoye, N.Y.
Manufacturers across product lines are concerned about the impact of a faltering stock market and the uncertainty of continued consumer confidence in addition to recent world events.
“Dealer and contractor purchasing is still conservative, as they take a wait-and-see attitude on the future of the economy, despite past strength in housing markets and infrastructure pent-up demand,” added Fien.
Manufacturers said continued excess inventories are a factor that would negatively impact future sales. Changes in distribution channels, particularly in rentals, will also affect demand. “Rental markets are oversaturated,” said Fien. “Rental firms have cut new equipment purchases and flooded the market with quality late-model used equipment, further depressing sales of new machines.”
The largest decreases are expected in the lift segment, with a 22.9 percent drop in U.S. sales; light equipment, with a 13.3 percent U.S. sales decrease; earthmoving equipment, with an 11.6 percent U.S. sales drop; bituminous machinery, 11.5 percent; and concrete and aggregate equipment, 7.8 percent.
