MILWAUKEE, Dec. 16, 2010 /PRNewswire-USNewswire/ -- In the just-released construction equipment "business outlook" survey of the Association of Equipment Manufacturers (AEM):
- Construction machinery manufacturers predict overall U.S. business to close out 2010 with 8-percent growth, then gain 14.4 percent in 2011 and 14.5 percent in 2012, with 2013 growth of 13.4 percent.
- Canadian business overall is expected to be 9 percent higher in 2010 than the previous year, and record gains of 13.2 percent in 2011, 13 percent in 2012 and 12.3 percent in 2013.
- Industry business to the rest of the world is anticipated to be strongest in 2010 – up by 14.4 percent -- and then grow 11.4 percent in 2011, 12 percent in 2012 and 11.2 percent in 2013.
The survey asked respondents to rank how several factors would influence sales. Not surprisingly, a key impediment to growth is the stagnant housing market. The general economy, including credit availability, also continues to be a major factor, as is highway funding. The brightest spot is increased export demand.
"While this rebound is welcome, you have to remember our industry was down 30 to 50 percent in the recession. Although business is improving, it will take years to recover the sales losses of 2008-2009," stated AEM President Dennis Slater.
"This hopeful outlook will be difficult to achieve without action now on transportation infrastructure legislation and export-promotion policies. Infrastructure investment and export agreements are proven ways to create and maintain jobs for U.S. workers, for a sustainable recovery and meaningful uptick in equipment demand," Slater said.
"The Administration and Congress need to truly focus on national policies that keep manufacturing strong, policies that create the certainty manufacturers need to invest and hire. A robust American manufacturing sector is necessary so our economy can compete with other countries and our equipment manufacturers are able to prosper and grow right here in the United States. Until these things are done, America's economy will suffer and our competitive position in the world will be threatened."
AEM is the North American-based international trade group representing the off-road equipment manufacturing industry. The "Outlook" includes the average of responses from manufacturers in each product line, predicting industry-wide expectations not individual company performance, and unit sales rather than company profitability. Visit www.aem.org for details.
SOURCE Association of Equipment Manufacturers