Equipment managers expected business to be better than it has been so far in 2016, and they have adjusted their fleet plans accordingly. In our 2015 Annual Report & Forecast published in January, more than half of respondents expected revenue to increase this year compared to 2015, but only 40 percent report actual growth halfway through the year. The percentage reporting declines in revenue is nearly double the percentage forecasting declines. The net (percentage citing an increase minus decline) fell to 19 from a forecast of 44 at the end of 2015.
Fleet trends are on track with business. Equipment managers expected to replace fleet at a 10-percent pace in this year, but at the mid point that rate is 8 percent. Fleet size trends are also below expectations at a net of 28 (percent increasing fleet size minus decreasing), off from the forecast net 34 percent.
Overall fleet condition, however, is steady. Last year, 45 percent said fleet health was either “excellent” or “very good,” and that’s still the case. Just less than half report the fleet is in “excellent” or “very good” condition.
Construction Equipment sent email invitations to select members of our audience who buy, specify, or influence purchases of equipment. We asked about business and equipment-fleet trends. Results and analysis are provided as a service to the industry through the partnership of Construction Equipment and Case Construction Equipment.