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AED Survey: Dealers Forecast Service, Sales Growth

Mon March 22, 2004 - National Edition
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As the construction equipment industry recovers and equipment sales climb, dealers are also forecasting service sales growth. With both, comes the search for new technicians and the inevitable shortage.

In March, AED surveyed member dealers to gauge the coming need for technicians. More than 90 percent of respondents predict an increase in service sales in 2004 — with 44.3 percent expecting the growth to reach 6 percent or more.

About 99 percent are forecasting continued service sales growth in 2005 — with 36.4 percent expecting that growth to be 6 percent or more. And in 2006, 94.3 percent expect another year of growth, although only 27.3 percent are prepared to forecast growth of 6 percent or more.

No dealer responding to the survey is forecasting a decrease in service sales in 2004, 2005 or 2006.

While the growth in service sales is good news, dealers are already reporting a labor shortage. Respondents to the survey report 3.7 current openings for technicians.