U.S. Construction Equipment Exports Down 25 Percent

📅 Wed November 30, 2016 - National Edition



Exports of U.S. made construction equipment fell 25 percent overall for the first three quarters of 2016 compared to 2015 January – September, for a total of $8.2 billion shipped to global markets.

All world regions were in decline from single-digit drops for Europe and Central America to decreases in the 50-percent range for Africa and South America, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data it uses in global market reports for members.

AEM is the North American-based international business group representing the off-road equipment manufacturing industry.

Exports by World Region

January-September 2016 U.S. construction equipment exports by major world regions compared to January-September 2015:

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

AEM's Benjamin Duyck, director of market intelligence, provides some insights:

“For the past 15 quarters U.S. exports of construction equipment declined year over year, and 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.”

Exports by Top 10 Countries

The top countries buying the most U.S. made construction machinery during the first three quarters of 2016 (by dollar volume) were:

Canada - $3.5 billion, down 21 percent

Mexico - $831 million, down 9 percent

Australia - $392 million, down 38 percent

Belgium - $294 million, up 33 percent

Germany - $202 million, up 24 percent

China - $190 million, down 8 percent

Peru - $181 million, down 30 percent

Chile - $165 million, down 60 percent

Japan - $147 million, up 6 percent

Brazil - $145 million, down 61 percent

Economic Resources Available

AEM provides a variety of market macroeconomic and industry trend data for members as well as survey opportunities and custom research. Visit www.aem.org in the Market Data/Market Intelligence section.