Exports of U.S.-made construction equipment fell 25% overall year-on-year in the first nine months of 2016, for a total US$8.2 billion shipped to global markets.
All world regions were in decline, from single-digit drops for Europe and Central America to decreases in the 50% range for Africa and South America, according to the
The AEM is the North American-based international business group representing the off-road equipment manufacturing industry.
Over the analysed period, U.S. construction equipment exports to Canada dropped 21%, for a total $3.5 billion; exports to Europe declined 6%, for a total $1.2 billion; exports to Central America fell 9%, for a total $1 billion; and exports to Asia decreased 30%, for a total $972 million. Meanwhile, U.S. construction equipment exports to South America declined 49%, for a total $733 million; with further equipment export declines to Australia/Oceania (- 36%) to $427 million; and to Africa (- 51% ) to $317 million.
AEM’s Benjamin Duyck, director of market intelligence, said: “For the past 15 quarters U.S. exports of construction equipment has declined year over year. In the third quarter of 2016, that trend remains unchanged. A key factor affecting the reduction in exports is most likely due to the strong dollar making U.S. manufacturers less competitive in the global marketplace. Of course, the strong currency is a problem that plagues all U.S. exports. Some international markets are still viable; exports are up year over year to Belgium and Germany, for example.
“Our expectations for the fourth quarter remain subdued as the U.S. dollar is experiencing its longest rally in 16 years. With the global economic malaise, the slowdown in emerging markets and the negative interest rates seen in several economies’ bond markets, investment is flowing to the U.S. and U.S. stocks, driving up demand for our dollar, inadvertently affecting our competitiveness abroad.”
The top countries buying the most U.S.-made construction machinery during the first three quarters of 2016 (by dollar volume) were:
1. Canada - $3.5 billion, down 21%
2. Mexico - $831 million, down 9%
3. Australia - $392 million, down 38%
4. Belgium - $294 million, up 33%
5. Germany - $202 million, up 24%
6. China - $190 million, down 8%
7. Peru - $181 million, down 30%
8. Chile - $165 million, down 60%
9. Japan - $147 million, up 6%
10. Brazil - $145 million, down 61%
