Canada leading home for U.S. construction equipment
By Andrew Snook
August 31, 2016 — Despite a 23 per cent decline in U.S. construction equipment exports from January to June 2016, Canada still remains the leading home by far for U.S. construction equipment.
According to the mid-year report from the Association of Equipment Manufacturers (AEM), Canada’s total U.S. construction equipment imports from January to June this year declined to $2.4 billion. That said, Canada’s total exports were larger than the next nine countries combined with Mexico the second largest home for U.S. construction equipment at $561 million.
Global U.S. exports of construction equipment were down 24 per cent at midyear, compared to the first half of 2015, with $5.65 billion shipped.
The only region that did not experience a decline was Europe, which was up 2 per cent.
Exports by world region
January to June 2016 U.S. construction equipment exports by major world regions compared to January to June 2015:
•Canada dropped 23 per cent, for a total $2.4 billion
•Europe gained 2 per cent, for a total $898 million
•Central America fell 7 per cent, for a total $696 million
•Asia decreased 28 per cent, for a total $664 million
•South America declined 49 per cent, for a total $504 million
•Australia/Oceania fell 30 per cent to $294 million
•Africa declined 43 per cent to $220 million
AEM market overview
“For the past 14 quarters, U.S. exports of construction equipment have declined year over year and at the midpoint in 2016, that trend remains unchanged,” said AEM’s Benjamin Duyck, director of market intelligence. “With the global economic malaise, the slowdown in emerging markets and the negative interest rates in several economies’ bond markets, investment is flowing to the U.S. and U.S. stocks, driving up demand for the U.S. 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 half of 2016 (by dollar volume) were:
1 Canada – $2.4 billion, down 23 per cent
2 Mexico – $561 million, down 7 per cent
3 Australia – $273 million, down 29 per cent
4 Belgium – $204 million, up 39 per cent
5 Germany – $148 million, up 32 per cent
6 Peru – $133 million, down 31 per cent
7 China – $122 million, down 13 per cent
8 Japan – $109 million, up 24 per cent
9 Chile – $108 million, down 60 per cent
10 United Kingdom – $100 million, down 7 per cent
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. For more information, contact AEM’s Benjamin Duyck, director of market intelligence (email@example.com).
About the Association of Equipment Manufacturers
AEM is the North American-based international trade group providing innovative business development resources to advance the off-road equipment manufacturing industry in the global marketplace. AEM membership comprises more than 900 companies and more than 200 product lines in the agriculture, construction, forestry, mining and utility sectors worldwide. AEM is headquartered in Milwaukee, Wisconsin, with offices in the world capitals of Washington, D.C.; Ottawa, Canada; and Beijing, China. Follow AEM @AEMAdvisor and facebook.com/AssociationofEquipmentManufacturers.