Q4 Ag and Construction Market Update: Construction Growth on the Horizon while Agricultural Growth Remains Under Pressure

Share:

11/13/2024

The short-term outlooks for equipment manufacturing and the agriculture and construction customers they serve remain somewhat uncertain due to the recent election and other factors. However, growth could be on the horizon, according to data presented at AEM’s Q4 Equipment Market Update Webinar.

While there is some uncertainty in the air as a result of the recent U.S. election, there are bright points appearing for both the ag and construction markets. Today's world construction market is characterized by easing inflation and declining interest rates, allowing for construction growth to start picking up again. 

On the ag side, rising inventory levels and weakened demand are turning up the pressure for equipment manufacturers. However, this may ease in the near future as the average fleet age nears maturity. 

With all that being said, here are some additional takeaways from AEM’s final Equipment Market Update Webinar of the year, which featured expert perspectives from AEM’s Al Melhim, senior director of business intelligence, and Tom Hogood, economist, construction at GlobalData:

Ag 

  • The U.S. ag equipment market is in recessionary mode, seeing slower sales, rising inventory levels, uncertain outlook, and reduction in capital investment and employment.
  • The used equipment market is showing cracks, new equipment year-to-date sales have dropped in 2024, and inventories are sitting at uncomfortably high levels.
  • The U.S. farm economy is most likely headed for another year of weak returns, as supply surpasses demand.
  • Pent up demand could increase sales in 2025 as interest rates drop.
  • Due to the cyclical nature of equipment sales, and as the average fleet age matures, equipment sales are expected to increase in the next one to three years. 

Construction 

  • Construction growth is expected as a result of slowing inflation across the world construction market, and as interest rates begin to decline.  
  • The energy and utility sector and the infrastructure sectors are key drivers of growth across the global industry, stemming from growing net-zero goals and government investment, while the residential sector is slightly lagging. 
  • The future is somewhat uncertain as a result of the recent election, but most experts are expecting a focus on deregulation, promoting construction activity and enabling infrastructure growth. 
  • While the ag industry is expected to head into another difficult year, especially as the farm economy continues to struggle, pent up demand may spur sales in the next year or two. On the construction side, it appears that construction growth is on the horizon, as the market becomes increasingly favorable due to decreased interest rates and deregulation.  

Learn More 

In addition to its quarterly Equipment Market Update Webinars, AEM continues to offer a wide range of other market data products. For more information, contact your Account Success Advisor

For more industry perspectives, subscribe to the AEM Industry Advisor

AEM Updates

For more AEM news and updates, subscribe to the AEM Industry Advisor.

Related Articles

Husco on Pioneering Tomorrow's Tech: Innovation, Product Development, and Automation Success Stories

AEM member company Husco participated in a feature panel during Milwaukee’s premier tech event, Summerfest Tech, in June. Husco Director of Talent Aquisition and Development...

Set Yourself Up for Success: Attend August’s CONEXPO-CON/AGG Exhibitor Meeting

By Dana Wuesthoff, CONEXPO-CON/AGG 2026 Show Director —Having spent the better part of the last two decades working in the exhibition and events industry, I’ve made my fair...

Where Product Design and Compliance Collide: The EU’s Ecodesign for Sustainable Products Regulation (ESPR)

By Mike Schmidt, AEM Director of Industry Communications — When it comes to the composition of manufactured products today, it’sno longerjust about whatmay bedeemed harmful or...

Insights from Contractors: The Value of CONEXPO-CON/AGG (And How They Plan to Make the Most of Their 2026 Show Experience)

Cutting-edge equipment, valuable manufacturer-customer connections, timely insights on pressing industry trends – all of it (and more) will be on hand in Las Vegas a few short...

New AEM Guidance Documents Set the Tone for Talking About Data, Cybersecurity, and Autonomy

By Gregg Wartgow and Mike Schmidt, Association of Equipment Manufacturers —Three aspects of modern agriculture and construction equipment continue to evolve and play a more...

View all AEM Updates