News
Canada solid as U.S. equipment exports fall

Feb. 26, 2015 – U.S. construction equipment exports fell in
all regions in 2014 but Canada, by far the largest importer of U.S.
construction equipment, showed the smallest decline of any export market.

Feb. 26, 2015 – U.S. construction equipment exports fell in
all regions in 2014 but Canada, by far the largest importer of U.S.
construction equipment, showed the smallest decline of any export market.

Exports of U.S.-made construction equipment ended 2014 with
a 13.2-percent drop compared to 2013, with a total $17.26 billion shipped to
global markets.

Business to Europe, South America and Australia/Oceania was
the hardest hit, according to the Association of Equipment Manufacturers (AEM),
citing U.S. Department of Commerce data it uses in global markets reports for
members.

Exports by World Region

Year-end 2014 U.S. construction equipment exports by major
world regions compared to year-end 2013:

• Canada dropped 2 percent, for a total $6.66 billion
• South America declined 28.3 percent, for a total $2.57
  billion
• Asia decreased 7.1 percent, for a total $1.98 billion
• Europe dropped 22.6 percent, for a total $1.98 billion
• Central America fell 11.4 percent, for a total $1.95 billion
• Africa decreased 5.2 percent to $1.23 billion
• Australia/Oceania fell 32.4 percent to $889.5 million

Exports by Top 10 Countries

The top countries buying the most U.S.-made construction
machinery during 2014 (by dollar volume) were:

1. Canada – $6.66 billion, down 2 percent
2. Mexico – $1.59 billion, down 11.3 percent
3. Australia – $808.3 million, down 34.9 percent
4. Brazil – $720.5 million, down 19 percent
5. South Africa – $669.5 million, down 1 percent
6. Chile – $617.4 million, down 38.2 percent
7. Belgium – $461.3 million, down 25.2 percent
8. Peru – $460.4 million, down 27.8 percent
9. China – $367.8 million, down 3.1 percent
10. Saudi Arabia – $326.9 million, up 10.7 percent   

Market Analysis Overview

The fourth quarter of 2014 marked the eighth consecutive
quarter that U.S. construction equipment exports experienced year-over-year
declines.

While exports have been decreasing steadily since the second
quarter of 2012, imports have been trending higher. The fast growth in the
post-recession export figures (2009-2012) was a strong driver for domestic
manufacturers, though it appears the domestic market has become one of the more
robust growth engines for the industry.

The recent declines in total construction equipment exports,
which were in line with regional development, have been partly due to:

• A retrenching from accelerated spending earlier in the
  economic recovery
• A strengthening dollar against the Japanese Yen
• Declines in commodity prices, particularly oil, copper and
  coal
• From a global perspective, the U.S. market remains strong,
  though somewhat affected by the oil price declines.

In the global markets:

• South America, and specifically the Brazilian market, remain
  challenging
• China also experienced a sluggish demand, despite government
  stimuli
• Europe's market remained uneven with growth in the United
  Kingdom
• The Russian market declined significantly
• The strong decrease in exports to Belgium can be attributed
  to the overall European market, as Belgium remains a throughput nation