Construction Equipment Shipments Climb 4%
Although the construction equipment market remains very depressed activity perked up in September. Orders from U.S. factories jumped nearly 50 percent to the highest level in a year. Shipments increased 4 percent and factory inventory fell marginally. The pickup is in domestic sales since imports fell much more sharply than exports. However, prices continued to slide lower in a weak market with excess inventory.
Other heavy equipment markets also had a strong month. Shipment rose for farm, mining, industrial and engines and construction equipment shipments from U.S. factories are forecast to average slightly below the September level through next summer and then rise more than 25 percent through the end of 2011. This still leaves shipments more than 40 percent below the peak level in early 2006 and still below the sales level in early 2009. As elsewhere in the US economy and the construction market, this is a sluggish recovery constrained by excess capacity.
Over the next year, equipment demand will rise strongly for single family site development and for exports. Demand will be up slightly for transportation facility, highway, bridge and water work. But equipment demand will continue to decline for power and energy related projects. Equipment demand will sink for six more months for nonresidential and multi-family building work with some of the loss regained in the following six months. |
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