Global exports of U.S.-made construction equipment dropped 17.6 percent in the first nine months of 2015 compared with the same period in 2014.
The value of those U.S. equipment exports still totaled $10.8 billion in the first three quarters of 2015, according to a recent news release from the Association of Equipment Manufacturers.
Equipment exports to Canada fell 15 percent year over year to $4.4 billion. That still left Canada as the largest export market for U.S. equipment among the world regions cited in the report.
Despite the drop, the release noted, “Statistics Canada recently reported that the economy returned to quarterly growth.”
Possible reasons for the global decline include difficulty in exporting equipment with low-sulphur diesel engines, the strengthening of local manufacturing, and the strong U.S. dollar, the release said.
“It will be interesting to see where the global economy is going in 2016,” the release added. “While exports might continue to slump, we will also be keeping our eyes on domestic demand and imports.”
Africa experienced the greatest decline in U.S. equipment exports — down 36 percent, to $611 million. South America dropped 28 percent, to $1.4 billion while exports to Central America fell by 21 percent, to $1.1 billion.
Declines were also double digit in Europe (11 percent, to $1.4 billion), and Asia (10 percent, to $1.4 billion).
Australia/Oceania had the smallest drop, five per cent, going down to $645 million.
“The third quarter of 2015 marked the 11th consecutive quarter that U.S. construction equipment exports experienced year over year declines,” the release said.
According to initial results, 35 percent of exporters surveyed for the AEM’s third quarter North American Construction Equipment Industry Conditions Trends Report indicated their exports had decreased. Just over half, 50.9 percent, indicated the market had stayed stable.
Imports to the U.S. also declined in the third quarter by 5.71 percent year over year.
“Declining imports is a bigger signal to the U.S. market, especially now that imports are relatively cheaper under the stronger dollar,” the release said. “In the third quarter AEM industry conditions survey, 42.3 percent of respondents indicated U.S. demand for equipment was lower this quarter vs. last year while 30.7 percent felt the market remained stable. For the next 12 months, overall growth is still expected.”
A big cloud is expected to be the Chinese market, the ninth largest U.S. export, which has declined 25 percent through the first three quarters of 2015, the release noted. Another cloud hangs over Brazil.
