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U.S.construction equipment exports drop 13 percent in 2014

Posted on:2015-03-10 09:40:11    Source:http://www.ccm-1.com    Editor: Cathy Xia
Exports of U.S.-made construction equipment ended 2014 with a 13.2-percent drop compared to 2013, with a total $17.26 billion shipped to global markets.
U.S. exports fell to all world regions for 2014. Business to Europe, South America and Australia/Oceania was the hardest hit, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data it uses in global markets reports for members.

Exports by World Region

Year-end 2014 U.S. construction equipment exports by major world regions compared to year-end 2013:

·Canada dropped 2 percent, for a total $6.66 billion

·South America declined 28.3 percent, for a total $2.57 billion

·Asia decreased 7.1 percent, for a total $1.98 billion

·Europe dropped 22.6 percent, for a total $1.98 billion

·Central America fell 11.4 percent, for a total $1.95 billion

·Africa decreased 5.2 percent to $1.23 billion

·Australia/Oceania fell 32.4 percent to $889.5 million

Exports by Top 10 Countries

The top countries buying the most U.S.-made construction machinery during 2014 (by dollar volume) were:

1.Canada - $6.66 billion, down 2 percent

2.Mexico - $1.59 billion, down 11.3 percent

3.Australia - $808.3 million, down 34.9 percent

4.Brazil - $720.5 million, down 19 percent

5.South Africa - $669.5 million, down 1 percent

6.Chile - $617.4 million, down 38.2 percent

7.Belgium - $461.3 million, down 25.2 percent

8.Peru - $460.4 million, down 27.8 percent

9.China - $367.8 million, down 3.1 percent

10.Saudi Arabia - $326.9 million, up 10.7 percent   

Market Analysis Overview

The fourth quarter of 2014 marked the eighth consecutive quarter that U.S. construction equipment exports experienced year-over-year declines.

While exports have been decreasing steadily since the second quarter of 2012, imports have been trending higher. The fast growth in the post-recession export figures (2009-2012) was a strong driver for domestic manufacturers, though it appears the domestic market has become one of the more robust growth engines for the industry.

The recent declines in total construction equipment exports, which were in line with regional development, have been partly due to:

·A retrenching from accelerated spending earlier in the economic recovery

·A strengthening dollar against the Japanese Yen

·Declines in commodity prices, particularly oil, copper and coal

From a global perspective, the U.S. market remains strong, though somewhat affected by the oil price declines.

In the global markets:

·South America, and specifically the Brazilian market, remain challenging

·China also experienced a sluggish demand, despite government stimuli

·Europe's market remained uneven with growth in the United Kingdom

·The Russian market declined significantly

·The strong decrease in exports to Belgium can be attributed to the overall European market, as Belgium remains a through-put nation

More Economic Resources

AEM’s Construction Equipment Global Markets report (and select other reports) are available to the public online (www.aem.org) through the AEM store (www.safetymaterials.org). AEM members may access the report via the AEM website/Market Intelligence section.

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 on request. For more information, contact AEM’s Benjamin Duyck, director of market intelligence (bduyck@aem.org).  
U.S. construction equipment exports drop 13 percent in 2014

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