The equipment manufacturing industry is one that is ever-changing, yet some familiar trends remain. The industry faces hiring difficulties with high numbers of job openings, and inflation and supply chain issues are still a concern, but many AEM members are optimistic better days are on the horizon.
The association regularly surveys its members regarding their thoughts on various economic trends and how they are affecting their efforts to do business, both within the United States and abroad. The information obtained through these quarterly Industry Conditions Surveys is just some of what's detailed in AEM's Business Intelligence Dashboard and then later summarized in AEM’s quarterly Equipment Market Outlook Webinars.
With 2023 just weeks ahead, here are a few key points from AEM’s most recent member survey and quarterly webinar regarding what equipment manufacturers are facing heading into next year:
- Inflation is at a 40-year high, and while increases seem to have slowed down, it remains a persistent issue. Inflation has been plaguing our economy and our industry, causing costs to increase. It is not only an issue in the United States; the European Central Bank is taking as much action as our own Federal Reserve to combat inflation.
- Everyone is still experiencing some level of supply chain problems; however, issues are improving for most AEM members. Construction equipment and agricultural equipment, as well as components and OEMs, are all synchronizing up closer with expected resolutions to supply chain issues toward the end of 2023.
- The long-term outlook of the construction industry is positive despite its poor performance over the past year. As inflationary pressures subside in the coming years, the construction industry’s annual growth rate is expected to rebound. The government’s direct investment into infrastructure, manufacturing and energy sectors creates stabilization in the industry.
- The agriculture industry is in a growth cycle that is seemingly slowing down, with supply chains being the primary issue. Quarterly numbers continue to deteriorate, yet the net rising indexes do remain positive. The vast majority of members experience growth year-over-year, and over half expect it in the next year.
- Difficulties in hiring are a major issue in the manufacturing industry, both in the office as well as the manufacturing floor. Members have expressed difficulties in hiring, experiencing shortages in both skilled and unskilled trades. Job opening levels are quite high, while hiring remains at a steady level.
Learn More: Contact Your Account Success Advisor
In addition to its quarterly Equipment Market Outlook Webinars AEM continues to offer a wide range of other market data products, including the AEM Business Intelligence Dashboard, reports, whitepapers and public market intelligence highlights. To learn more, contact your Account Success Advisor.
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