Plagued by lagging residential activity, increased uncertainty about the economy and tightening credit, the market for construction machinery will grind
Plagued by lagging residential activity, increased uncertainty about the economy and tightening credit, the market for construction machinery will grind gears before powering back up to $26.0 billion by 2011, according to U.S. Market for Construction Machinery Manufacturing. The report from market research publisher Specialists in Business Information tracks how U.S. shipments nearly doubled in size between 2002 and 2006, with sales of $12.7 billion and $24.8 billion, respectively. However, SBI forecasts the total U.S. market for construction machinery will show a 12 percent decline in 2007 to $21.9 billion, due to lower demand and higher production costs Û and an additional 5 percent to $20.6 billion in 2008.
According to the report, a sales climb should resume by 2009, though at a relatively lower rate than seen in previous years. Growth of 6 percent to $21.9 billion Û in line with the 1997-2006 annual pace Û followed by growth of 10 percent and 8 percent for 2010 and 2011, respectively, will bring the expected CAGR for the 2006-2011 period in at 1 percent.
U.S. Market for Construction Machinery Manufacturing covers nine main product categories in both heavy and light construction equipment, including power cranes, draglines and excavators; mixers and pavers; off-highway trucks, trailers, coal haulers and wagons; tractor shovel loaders; and, crawler tractors and dozers. It also identifies key market trends and profiles major market players. The report is available from SBI at www.sbireports.com/Construction-Machinery-Equipment-1487870/, or www.MarketResearch.com