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.