ForConstructionPros.com

In mid-January, I had just returned from the Associated Equipment Distributors (AED) convention in Chicago. AED’s members in the construction and rental markets were accompanied by banks, equipment manufacturers, service providers and insurance companies - showing up 2,500 strong with many of those attending wondering what is going to happen in 2008.

I, too, wanted to know what to expect in 2008, and thus concentrated my conversations along those lines, with special efforts made to attend discussions presented by economists and industry analysts. I also made it a point to ask each manufacturer I could find the same question: “What are you hearing from your dealer network about 2008 activity?”

At the end of the meeting, I was pleasantly surprised and could comfortably say 2008 should be an okay year for most contractors. The exception would be those really in a niche housing market who can’t divert their skills to one of the healthier construction markets. But if they can, they should come out okay.

Equipment pricing trends

Taking this analysis a step further, it appears the equipment markets will be similar to those in 2007. I would not expect any significant price increases in new or used equipment, nor in rental rates for general construction equipment.

New equipment prices for some equipment may be soft this year, because the national rental companies do not seem to be buying as much as they predicted. On the other hand, there may be some late-model, low-hour equipment on the market as a result of rental companies downsizing their fleets. If I had to guess, new or fairly new equipment should be available at attractive prices and, if you have good credit, at attractive interest rates. Anyone who has been holding off on equipment purchases may find that 2008 is the year to proceed with those plans.