The global skid steer loader market is forecast to grow at a CAGR of 7% during the period 2017-2021.
The report, Global Skid Steer Loader Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the Key vendors operating in this market.
Rental stores have become the most ideal place for selling compact machines. Small and medium-sized enterprises (SMEs) are increasingly using construction equipment on a rental basis because of the high cost of ownership of construction equipment. Customers who use equipment on a rental basis are entitled to pay the rent on a monthly basis. Rental stores are playing a very important role as rental dealer shops for the best combination of versatility, reliability, strength, and ease of maintenance. The rental market is seeing a huge growth due to increased demand from the construction sector.
According to the report, the US and Canada are the major construction markets in the Americas. Both the countries are witnessing growth in construction activities, especially in the residential sector. The US has seen an increase of 12% in the single-family residential homes. Single-family residential construction is projected to be strong during the forecast period. The number of new privately owned housing units, which were in the start-up phase, increased by 4.86% in 2016 from the 2015 figures, the number of housing units under construction increased by 8.10% in 2016 from the 2015 figures, and the number of housing units completed increased by 9.71% in 2016 from the 2015 figures. Increasing population, public spending, GDP, income, and higher employment are all set to drive the US construction market.
Further, the report states that skid-steer loader is an expensive equipment. Fluctuating prices of raw materials such as aluminum, stainless steel, and iron ore hinder the growth of the market. Increment in material costs will lead to a rise in production costs, which inflates the price of the equipment. This impacts the productivity of vendors as well as profit margins. High price leads to reduction in sales, thus affecting profit margins. In addition, the necessity for constant maintenance and support from vendors increases the overall cost of ownership and has an adverse effect on vendors' profit margins.