AEM: U.S. construction equipment exports down
June 8, 2015 - Exports of U.S.-made construction equipment declined 14.9 per cent in the first quarter of 2015, compared to Q1 2014, with a total $3.65 billion shipped to global markets.
All world regions experienced declines, and all in the double digits except Canada and Europe, with Africa the hardest hit, according to the Association of Equipment Manufacturers (AEM), the North American-based international trade group representing the off-road equipment manufacturing industry. AEM cited U.S. Department of Commerce data it uses in global market reports for members.
Exports by world region
U.S. construction equipment exports in Q1 2015 by major world regions compared to Q1 2014:
•Canada dropped 4.6 per cent, for a total $1.5 billion;
•South America declined 26 per cent, for a total $482.5 million;
•Asia decreased 15.8 per cent, for a total $458.2 million;
•Europe dropped 6.6 per cent, for a total $433.1 million;
•Central America fell 15.3 per cent, for a total $382.7 million;
•Australia/Oceania fell 23 per cent to $179 million; and
•Africa decreased 43.3 per cent to $210.1 million.
AEM market analysis overview
AEM’s Benjamin Duyck, director of market intelligence, offered the following insights:
The first quarter of 2015 marked the ninth consecutive quarter that U.S. construction equipment exports experienced year-over-year declines, while imports continue to increase. This can be partially explained by the stable U.S. market and the strong dollar, making U.S. equipment manufacturers less competitive. Opposing the strong dollar is a weaker euro that is also driving European exports.
Overall, the Q1 2015 trade deficit has subtracted 1.9 per cent from GDP growth, the largest subtraction in 30 years. While the current currency issue is a long term one, recent exports also have suffered a short-term setback with the West Coast port dispute earlier this year.
While the U.S. experienced declines in exports to most major trading partners, exports to Vietnam, Turkey, Netherlands, United Arab Emirates, France and Argentina increased significantly.
Exports by top 10 countries
The top countries buying the most U.S.-made construction machinery during first quarter 2015 (by dollar volume) were:
1. Canada - $1.5 billion, down 4.6 per cent
2. Mexico - $310.3 million, down 16.1 per cent
3. Australia - $164 million, down 24.5 per cent
4. Brazil - $134 million, down 16.2 per cent
5. Chile - $116.7 million, down 40.8 per cent
6. South Africa - $116.4 million, down 51.8 per cent
7. Peru - $101.9 million, down 30.7 per cent
8. Belgium - $73.1 million, down 25.4 per cent
9. China - $70.1 million, down 34.6 per cent
10. South Korea - $64.9 million, down 10.9 per cent
About the Association of Equipment Manufacturers
AEM is the North American-based international trade group providing innovative business development resources to advance the off-road equipment manufacturing industry in the global marketplace. AEM membership comprises more than 900 companies and more than 200 product lines in the agriculture, construction, forestry, mining and utility sectors worldwide. AEM is headquartered in Milwaukee, Wisconsin, with offices in the world capitals of Washington, D.C.; Ottawa, Canada; and Beijing, China.