Estimated total U.S. consumption of construction machinery, in units, since 1990
Photo credit: Manfredi & Associates Inc.
Manfredi & Associates forecasts 2011 construction machinery unit retail sales will increase 14% compared with 2010. That compares with a growth of 21% in 2010 compared with 2009. The market research firm estimates that total U.S. consumption peaked in 2005 at more than 223,000 units and that it declined approximately 70% to 69,000 units in 2009. The 21% jump in 2010 compared with 2009 put the market back at the consumption level achieved by the industry in 1992. The 2011 market retail growth rate of 14% to approximately 96,000 units lifts the industry to the same level as in 1993.
Manfredi suggests that underlying U.S. construction economy remained weak throughout 2010, and machine demand last year was driven by equipment-distributor inventory building and re-fleeting by rental companies. In addition, some contractors were motivated to buy new Tier 3 machines and good used machines ahead of the implementation of the EPA's implementation of Tier 4 Interim emission regulations in primary construction-machine engine sizes on January 1,2011. Anticipation of the new emission regulations had the effect of accelerating sales in the 2010 fourth quarter.
Manfredi & Associates Inc., based in Mundelein, Ill., is a market research firm that has specialized in the construction, mining, agricultural and material handling markets for nearly 30 years. Contact Frank Manfredi for details of how to obtain a copy of the forecast and of its two monthly newsletters, Machinery Outlook and Machinery Outlook Europe that specialize in the machinery markets, at email@example.com, or visit the website at www.machineryoutlook.com.