More than 80 percent of North America’s construction equipment dealers are optimistic that the economy in 2003 may begin exercising some of its tired muscles.

Despite some concerns about the continuing fragility of the U.S. economy, a surprisingly high 82 percent of those who sell and rent construction equipment expect their total revenues to increase or stay the same next year. Moreover, 38 percent of that high majority group predict revenue improvement, according to the Associated Equipment Distributor’s (AED)’s just-completed research into its members’ business forecasts. Nearly 250 companies, representing every part of the U.S. and Canada, voiced their predictions. AED, based in Oak Brook, IL, is the organization for the industry’s distributors and manufacturers.

Most dealers also plan to purchase inventory in 2003, according to survey results. Over two-thirds of them, 67 percent, say that they will purchase new equipment inventory either at the same level as this year, or increase their investment in machines on hand for customers. A slightly higher number, 68 percent, plan to invest in rental equipment inventory, results indicated.

Dealers across the U.S. and Canada say 40 percent of equipment customers are renting, but not buying, while about 20 percent of customers are mixing purchase with rental activity. Study participants also reported that only eight percent of their customers, nationally, complain of having no work to do.

The dealers’ prediction is consistent with reports at a recent conference sponsored by Reed Construction Data at the National Press Club in Washington, D.C. "As the economy continues to struggle, the North American construction industry remains one it strongest sectors," according to a news report on the Oct. 30 conference from Reed Data.

The AED study showed that while most equipment dealers won’t say that equipment markets have rebounded from the high levels of two and three years ago, their responses indicate hope for improvement in 2003. Factors for optimism include the report that nearly two-thirds of dealers across North America say that current inventories are in-line with general market conditions in their respective areas. Further, 85 percent of equipment distributors do not expect to lay off workers in the coming year, according to the AED survey.

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