Exports of Construction Equipment Down 25%: AEM

November 30, 2016

Exports of U.S.-made construction equipment fell 25 percent for the first three quarters of 2016 compared to 2015, according to AEM.

The Association of Equipment Manufacturers says U.S. Department of Commerce data indicated $8.2 billion of equipment was shipped to global markets. All world regions were in decline, it says:

  • Canada dropped 21 percent, for a total $3.5 billion
  • Europe declined 6 percent, for a total $1.2 billion
  • Central America fell 9 percent, for a total $1.0 billion
  • Asia decreased 30 percent, for a total $972 million
  • South America declined 49 percent, for a total $733 million
  • Australia/Oceania fell 36 percent to $427 million
  • Africa declined 51 percent to $317 million

AEM Market Overview

“For the past 15 quarters, U.S. exports of construction equipment declined year over year,” said Benjamin Duyck, AEM’s director of market intelligence. “In the third quarter of 2016, that trend remains unchanged. A key factor affecting the reduction in exports is most likely due to the strong dollar making U.S. manufacturers less competitive in the global marketplace. Of course, the strong currency is a problem that plagues all U.S. exports. Some international markets are still viable; exports are up year over year to Belgium and Germany, for example.

“Our expectations for the fourth quarter remain subdued as the U.S. dollar is experiencing its longest rally in 16 years. With the global economic malaise, the slowdown in emerging markets and the negative interest rates seen in several economies’ bond markets, investment is flowing to the U.S. and U.S. stocks, driving up demand for our dollar, inadvertently affecting our competitiveness abroad.”

Top 10 countries for exports:

  1. Canada - $3.5 billion, down 21 percent  
  2. Mexico - $831 million, down 9 percent
  3. Australia - $392 million, down 38 percent
  4. Belgium - $294 million, up 33 percent
  5. Germany - $202 million, up 24 percent
  6. China - $190 million, down 8 percent
  7. Peru - $181 million, down 30 percent
  8. Chile - $165 million, down 60 percent
  9. Japan - $147 million, up 6 percent
  10. Brazil - $145 million, down 61 percent

Source: AEM