The construction equipment market through April is in the same freefall as construction spending was earlier in the year. Equipment shipments from US factories fell 7.3% in April from March. Orders jumped but are still 1/3 lower than shipments; unfilled orders have fallen to nearly 30% below a year ago. Equipment prices fell in May after rising modestly for many months. By contrast, equipment rental rates rose slightly in line with the slim pickup in construction spending in the last few months.

The freefall in equipment shipments is expected to end during the summer but there will be no significant pickup until next spring when construction spending is again rising steadily both in the US and major equipment export countries, especially Canada.

US Equipment Market – June 2009

Data Sources: US Department of Commerce and US Department of Labor
Table: Reed Construction Data