OutlookAs the economy continues to recover and grow following a tumultuous 2020, AEM’s Business Intelligence Department wanted to share some highlights of the recently published U.S. Ag and CE Machinery Outlook Reports.

For a full discussion of these quantitative insights, as well as an overview of the member perceptions on our industries’ business cycle, AEM is pleased to offer its free, two-part Q2 2021 Manufacturing Outlook Webinar, brought to you by Crenlo Engineered Cabs and slated for Thursday, April 29 from 12 p.m. to 1 p.m. CT.

“This webinar, geared specifically for AEM members, will provide the latest insights and most relevant information related to equipment manufacturing and the markets it serves,” said AEM Director of Market Intelligence Benjamin Duyck. “In addition, it will prepare them to navigate the challenges and opportunities set to impact their businesses early on in 2021.”

According to Oxford Economics, an economic partner of AEM, the U.S. construction machinery market contracted 11.5% last year due to the strict lockdown restrictions and weaker global demand. However, the sector is set to see a double-digit expansion this year, more than making up for the losses incurred. The construction sector has been one of the sectors least affected by public health restrictions, given the outdoor and essential nature of some of the work. Furthermore, the American Rescue Plan and other government support should push a strong recovery this year and pose an upside for 2021 and 2022.The machinery market is expected to grow 15.2% in 2021, after contracting. In addition, demand for construction machinery should benefit from continued strength in residential construction activity, which is the strongest subsector within construction this year.

Meanwhile, on the agriculture side in 2020, demand remained high. However, production in the U.S. agricultural machinery market shrunk 5.8% in 2020 due to the COVID-19 pandemic, less than the average for the developed region as a whole, leading to a reduction in inventories. Following a strong initial reaction in the first half of 2020, a recovery started to gather pace from Q2 2020 due to stronger consumer and export demand. This momentum should carry into this year, with output growth set to more than make up the losses of last year. The market is expected to grow 15.8% in 2021.

AEM encourages its members to remain ahead of the market by attending this coming week’s two-part webinar, which will take place as follows:

Part 1: Forecast of Machinery Presentation 12 p.m. – 12:30 p.m. CT

Oxford Economics’ Economist Chloe Parkins and Director of U.S. Industry Services Mark Killion will provide quantitative data from the first quarter U.S. Ag and CE Machinery Outlook Reports.

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.

Part 2: Construction Market Insights Presentation 12:30 p.m. – 1:00 p.m. CT

AEM’s Benjamin Duyck will discuss the latest AEM membership qualitative insights and their relation to the outlook, followed by an opportunity for an audience Q&A.

For more information on the upcoming webinar or various other AEM Business Intelligence offerings, contact Benjamin Duyck at bduyck@aem.org.

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