U.S. residential construction will continue to drive industry growth in the near term, while non-residential and infrastructure investments will become more important growth engines in the medium- and long-term. Both trends will help equipment manufacturers, says Benjamin Duyck, AEM director market intelligence.

Speaking at a recent regional member meeting in Atlanta, Duyck said according to numbers from BMI, the U.S. construction industry is estimated to have grown 3.1 percent in real terms in 2014, well above the current five-year average of -2.4 percent.

Duyck said that according to AEM’s North America Construction Equipment Industry Trends Report, widespread reports of increased demand for construction equipment indicated that the uptick in the industry continued into the 3rd quarter of 2014, yielding a net rising index for unit volume of demand of +30.6, the fourth quarter in a row with an index reading at this level or above.

The global landscape for construction equipment continues to change, he said, as exports of U.S.-made products ended 2014 with a 13.2-percent drop compared to 2013.

Though somewhat affected by oil price declines, Duyck said, the U.S. construction industry remains strong while global markets are experiencing turmoil. Although economic growth in the rest of the world is slowing, the U.S. economy is poised for another year of growth with a GDP in 2015 of up to 3 percent.

An overall growing but tighter housing market; low inflation; growing consumer confidence, personal income and construction spending; lower energy costs; and summer employment growth numbers in winter will continue to push the U.S. economy forward, he noted.

Duyck said that AEM’s Market Intelligence department is available to assist members in discovering trade opportunities by product and region.

For more information, contact AEM’s Benjamin Duyck (bduyck@aem.org, tel: 414-298-4154).

Regional Meeting Results in Productive Dialogue

Duyck's presentation was part of a regional member meeting hosted by AEM member Sandvik Construction.

The meeting triggered a highly productive dialogue between members and AEM staff concerning services and current issues faced by equipment manufacturers.

Members also had the chance to exchange knowledge among themselves about how AEM services helped them develop solutions to industry and company issues.

Visit the “Maximize Your Membership Value” page on the AEM website for future meeting dates and locations.