Construction equipment shipments from U.S. factories are expanding slowly after the abrupt collapse at the beginning of the year. This is being driven primarily by rising exports and falling imports in response to the 31% trade-weighted drop in value of the U.S. dollar since the peak in 2002.

Earthmoving and Lifting Equipment Sales Continue to Improve
Domestic purchases have also increased slightly. Earthmoving and lifting equipment sales continue to improve, with customers facing record-long delivery lead times. However, other equipment sectors have weakened, especially the smaller machines used in residential work.

Equipment rental rates have fallen slightly in the last few months, a signal that rental house equipment fleets are about at the right level. Equipment shipments are expected to dip slightly ahead and not return to the current level until late next year, based on the Reed Construction Data forecast of no increase in construction volume (after inflation) until next spring. After that, a gradual rise in shipments and slightly stronger pricing is expected for the rest of 2008 and 2009.

Member Comments