Want to learn about the likely economic outcomes for the second half of 2020? Looking for sector insights for construction and agricultural machinery, the various forecast scenarios for the remainder of the year and the drivers behind the industries?
Consider attending a special webinar presentation for AEM members, held in support of the association’s U.S. Ag and CE Machinery Outlook Reports. Slated for Thursday, Sept. 17, the webinar will feature Oxford Economics’ Economist Chloe Parkins and Director of Industry Services Mark Killion.
“AEM is committed to providing members with useful tools and resources to help then make informed and actionable decisions,” said AEM Director of Market Intelligence Benjamin Duyck. “This webinar, along with our newly offered U.S. Ag and CE Machinery Outlook Reports, aim to help our members better understand and – more importantly, more effectively compete – in today’s marketplace.”
Some Construction Machinery Outlook highlights include:
- U.S. production of construction and mining machinery is set to contract -15.3% in 2020, reflecting a weak start to the year compounded by the sharp plunge in output seen over April and May, before an expected recovery takes hold in H2.
- Demand from non-residential construction is set to weigh heavily on overall demand this year due to the pandemic. Pre-planned ‘mega projects’ in the private sector are likely to be postponed until the later part of this year, going into 2021.
- Residential construction also remains fairly weak, but to a lesser extent. Rising unemployment will reduce demand for maintenance and repair and reducing the affordability for first time buyers. However, some of the pent-up demand for new housing is likely to be recovered as conditions improve.
Some Agricultural Machinery Outlook highlights include:
- Agricultural machinery output is set to contract 6.7% this year, largely due to weakness in H1 2020 as a result of the coronavirus. Social distancing measures have had a negative impact on output levels. Even prior to the coronavirus period, lower farm incomes had reduced the amount of investment.
- Although production and shipments of farm machinery and equipment have been down, demand for key commodities such as wheat, corn and soybeans should remain steady as they are key inputs to essential food products and in demand by trading partners.
- However, demand for farm and machinery equipment may be largely skewed towards replacement parts rather than extra machinery for capacity or efficiency gains until farm income and business confidence firms given the uncertain economic and trade environment.
Through AEM’s partnership with Oxford Economics, the quarterly Agriculture and Construction Machinery Outlook reports offer information on the evolution of the U.S. market, tied to trends in key industry drivers, such as industry structure, trade and major events. Direct links to these reports are below for your convenience and with updates posted quarterly (for members only):
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