Exports of US-made construction equipment declined 14.9% for first quarter 2015 compared to first quarter 2014, with a total US$3.65 billion shipped to global markets.
All world regions experienced declines, and all in the double digits except Europe and Canada, with Africa the hardest hit, according to the Association of Equipment Manufacturers (AEM), the North American-based international trade group representing the off-road equipment manufacturing industry.
AEM cited US Department of Commerce data it uses in global market reports for members.
Exports by World Region
In the first quarter 2015, US construction equipment exports by major world regions compared to first quarter 2014 showed that Canada dropped 4.6%, for a total $1.5 billion; South America declined 26% ($482.5 million); Asia decreased 15.8% ($458.2 million); Europe dropped 6.6% ( $433.1 million); Central America fell 15.3% ($382.7 million: Australia/Oceania fell 23% to $179 million, and Africa decreased 43.3% to $210.1 million
AEM’s Benjamin Duyck, director of market intelligence, provides some insights.
The first quarter of 2015 marked the 9th consecutive quarter that US construction equipment exports experienced year-over-year declines, while imports continue to increase.
This can be partially explained by the stable US market and the strong dollar, making US equipment manufacturers less competitive. Opposing the strong dollar is a weaker euro that is also driving European exports.
Overall, the Q1 2015 trade deficit has subtracted 1.9% from GDP growth, the largest subtraction in 30 years. While the current currency issue is a long term one, recent exports also have suffered a short-term setback with the West Coast port dispute earlier this year.
While the US experienced declines in exports to most major trading partners, exports to Vietnam, Turkey, Netherlands, United Arab Emirates, France and Argentina increased significantly.
The top countries buying the most US-made construction machinery during Q1 2015 (by dollar volume) were:
1. Canada: $1.5 billion, down 4.6%.
2. Mexico: $310.3 million (-16.1%).
3. Australia: $164 million (-24.5%).
4. Brazil: $134 million (-16.2%).
5. Chile: $116.7 million (-40.8%).
6. South Africa: $116.4 million (-51.8%).
7. Peru: $101.9 million (-30.7%).
8. Belgium: $73.1 million (-25.4%).
9. China: $70.1 million (-34.6%).
10. South Korea: $64.9 million, down 10.9%.
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Custom detailing exports by 10 Digit HS code to various countries worldwide, as well as an overview of export market opportunities by product, are available to members on request.
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