Exports of U.S.-made construction equipment declined 25% overall for first quarter 2016 compared to first quarter 2015 with a total $2.7 billion shipped to global markets. The first quarter of 2016 marked the 13th consecutive quarter that U.S. construction equipment exports experienced year-over-year declines. The continued downturn in exports is linked to the strong U.S. dollar, reducing our nation’s competitiveness by making U.S. equipment relatively more expensive.
Overall, the construction industry is expected to continue to grow by 3.4% globally in 2016, according to Business Monitor International; however, roughly half that growth is expected from the North American markets.
U.S. construction equipment exports to Africa and South America experienced the sharpest declines, each down nearly 50%, while Central America exports were stable and Europe gained slightly, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data it uses in global market reports for members.
First quarter 2016 U.S. construction equipment exports by major world regions compared to first quarter 2015:
- Canada dropped 28%, for a total $1.1 billion
- Europe gained 5%, for a total $455 million
- Central America fell 1%, for a total $378 million
- Asia decreased 37%, for a total $290 million
- South America declined 47%, for a total $258 million
- Australia/Oceania fell 10% to $162 million
- Africa declined 49% to $107 million
The most impactful decreases in exports could be found in the earthmoving equipment segment, which decreased roughly 35%. While small, we did see increases in the lifting equipment segment, driven mostly by self-propelled aerial work platforms.
Looking at the individual countries, Belgium was up roughly 38%, which might look surprising. The Port of Antwerp, though, serves as a pass- through for the European continent. Exports to Germany and the United Kingdom were also up; growth in Germany appears to have been driven by a boost in excavators and wheel loader exports and exports to the UK appear to be driven by an increase in self-propelled aerial work platforms.
The top countries buying the most U.S.-made construction machinery during first quarter 2016 (by dollar volume) were:
- Canada - $1.1 billion, down 28%
- Mexico - $310 million, down .01%
- Australia - $148 million, down 10%
- Belgium - $101 million, up 38%
- Peru - $85 million, down 17%
- Germany - $74 million, up 58%
- Chile - $60 million, down 48%
- China - $49 million, down 31%
- United Kingdom - $47 million, up 8%
- South Africa - $40 million, down 65%
