Tag Archive for 'exports'

AEM Market Update and Analysis: U.S. Construction Equipment Exports Down 25 Percent

imageExports of U.S.-made construction equipment fell 25 percent overall for the first three quarters of 2016 compared to 2015 January – September, for a total $8.2 billion shipped to global markets.

All world regions were in decline from single-digit drops for Europe and Central America to decreases in the 50-percent range for Africa and South America, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data it uses in global market reports for members.

AEM is the North American-based international business group representing the off-road equipment manufacturing industry.

Exports by World Region

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January-September 2016 U.S. construction equipment exports by major world regions compared to January-September 2015:

Canada dropped 21 percent, for a total $3.5 billion
Europe declined 6 percent, for a total $1.2 billion
Central America fell 9 percent, for a total $1.0 billion
Asia decreased 30 percent, for a total $972 million
South America declined 49 percent, for a total $733 million
Australia/Oceania fell 36 percent to $427 million
Africa declined 51 percent to $317 million
AEM Market Overview

AEM’s Benjamin Duyck, director of market intelligence, provides some insights:

“For the past 15 quarters U.S. exports of construction equipment declined year over year and in the third quarter of 2016, that trend remains unchanged. A key factor affecting the reduction in exports is most likely due to the strong dollar making U.S. manufacturers less competitive in the global marketplace. Of course, the strong currency is a problem that plagues all U.S. exports. Some international markets are still viable; exports are up year over year to Belgium and Germany, for example.

“Our expectations for the fourth quarter remain subdued as the U.S. dollar is experiencing its longest rally in 16 years. With the global economic malaise, the slowdown in emerging markets and the negative interest rates seen in several economies’ bond markets, investment is flowing to the U.S. and U.S. stocks, driving up demand for our dollar, inadvertently affecting our competitiveness abroad.”

Exports by Top 10 Countries

The top countries buying the most U.S.-made construction machinery during the first three quarters of 2016 (by dollar volume) were:

Canada – $3.5 billion, down 21 percent
Mexico – $831 million, down 9 percent
Australia – $392 million, down 38 percent
Belgium – $294 million, up 33 percent
Germany – $202 million, up 24 percent
China – $190 million, down 8 percent
Peru – $181 million, down 30 percent
Chile – $165 million, down 60 percent
Japan – $147 million, up 6 percent
Brazil – $145 million, down 61 percent
Economic Resources Available

AEM provides a variety of market macroeconomic and industry trend data for members as well as survey opportunities and custom research. Visit www.aem.org in the Market Data/Market Intelligence section. For more information, contact AEM’s Benjamin Duyck, director of market intelligence (bduyck@aem.org).

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About the Association of Equipment Manufacturers (AEM) – www.aem.org 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.

AEM Reports: Midyear 2014 U.S. construction machinery exports decline 17.3 percent

AEM LogoU.S. construction machinery exports dropped 17.3 percent during the first half of 2014 compared with midyear 2013: $8.93 billion in exports were shipped to global markets compared to $10.8 billion for first-half 2013, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data.

The AEM off-road equipment manufacturing trade group produces global trends reports using U.S. Commerce Dept. information to assist members’ business planning.

Africa was the only world area in the plus column, with a 4.3 percent increase. Australia /Oceania recorded the steepest decline, at 38.6 percent, followed by South America with a 33.1-percent drop.

At midyear 2014, exports of construction machinery to Europe declined 25.4 percent compared to first-half 2013, for a total $1.02 billion, and exports to Canada dropped 4.6 percent to total $3.51 billion.

Exports to Asia declined 13.9 percent to $1.04 billion for the first half of 2014. Mid-year exports to Central America decreased 23.7 percent to $949.3 million, and exports to South America declined 33.1 percent to $1.28 billion.

Australia/Oceania’s construction equipment export purchases decreased 38.6 percent for a total $460.7 million, while Africa took delivery of $682.1 million worth of construction equipment, a gain of 4.3 percent.

The top countries buying the most U.S.-made construction machinery during the first half of 2014 were: (1) Canada – $3.51 billion, down 4.6 percent; (2) Mexico – $770.4 million, down 24.6 percent; (3) Australia – $424.7 million, down 40.6 percent; (4) South Africa – $400.5 million, down 26.7 percent; (5) Brazil – $358.3 million, down 30.1 percent; (6) Chile – $299.8 million, down 37 percent; (7) Peru – $279.4 million, down 15.1 percent; (8) Belgium – $210.4 million, down 36.3 percent; (9) Saudi Arabia – $206.2 million, down 43.1 percent; (10) China – $189.8 million, down 21.8 percent; (11) Russia – $172.1 million, down 36 percent.

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ABC Reports: First Quarter GDP: Nonresidential Fixed Investment in Structures Falls 12 Percent

“This GDP release shows that nonresidential construction momentum stalled during 2012’s initial quarter. But because the economy has improved since last September, the expectation is that nonresidential construction data will be more upbeat during the months ahead.” —ABC Chief Economist Anirban Basu.

 

Nonresidential fixed investment in structures dropped 12 percent in the first quarter of 2012 following a 0.9 percent decrease in the fourth quarter of 2011, according to the April 27 Department of Commerce Gross Domestic Product (GDP) report.

Nonresidential fixed investment in equipment and software increased 1.7 percent for the quarter after a 7.5 percent increase in the previous quarter. Overall, nonresidential fixed investment fell 2.1 percent in the first quarter of 2012 following a revised 5.2 percent increase in the previous quarter.

Residential fixed investment jumped 11.9 percent during the past three months following an 11.6 percent increase the previous quarter. Exports increased 5.4 percent for the quarter, with exports of goods rising 4.1 percent and exports of services rising 8.6 percent. Imports also saw an increase, up 4.3 percent for the quarter, with imports of goods up 3 percent and imports of services up 11 percent.

Federal government spending fell 5.6 percent in the first quarter of 2012 following a 6.9 percent decrease in the previous quarter. National defense spending decreased 8.1 percent in the first three months of 2012 while federal nondefense spending decreased 0.6 percent. State and local government spending was down for the seventh straight quarter, with spending decreasing 1.2 percent during the past three months.

Personal consumption expenditures increased 2.9 percent for the quarter, with expenditures of goods increasing 6.2 percent and expenditures of services increasing 1.2 percent. Changes in real private inventories added 0.59 percent to the first-quarter change in real GDP. Real final sales of domestic product, which is GDP minus the change in private inventories, increased 1.6 percent in the quarter following a revised 1.1 percent increase in the fourth quarter.

Gross domestic purchases – purchases of goods and services by U.S. residents wherever they are produced – increased 4.6 percent for the quarter following an increase of 4.3 percent in the previous quarter.

Overall, real GDP increased 2.2 percent in the first quarter of 2012, after a revised 3 percent increase in the fourth quarter of 2011.

Analysis

“Today’s GDP report extends the string of negative data releases for nonresidential construction activity in America,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Previous releases showed declines in employment, backlog, and construction spending. This GDP release shows that nonresidential construction momentum stalled during 2012’s initial quarter. In addition, output was down substantially in a number of key economic segments, apparent in the 12 percent decline in nonresidential fixed investment in structures.

“Overall, today’s report was disappointing,” Basu said. “The consensus forecast had called for 2.5 percent GDP growth during the first quarter on an annualized basis, but the actual figure came in at 2.2 percent, and much of the disappointment showed up in the nonresidential construction category.

“This performance is at least partially a reflection of the economic soft patch that overtook the economy early last year. Construction tends to lag the overall economy and the economic weakness of that period appears to be translating into diminished nonresidential construction activity today,” Basu said. “Because the economy has improved since last September, the expectation is that nonresidential construction data will be more upbeat during the months ahead.

“Most of the good news in today’s GDP release pertains to consumer-related activity, which is a net positive for commercial construction,” Basu said. “For instance, personal consumption expenditures were up 2.9 percent and residential fixed investment was up 11.9 percent. The ongoing growth in U.S. exports was also positive, including for the industrial real estate market.”

For more information or to see previous reports visit:

http://www.abc.org/Hot_Links/ConstructionEconomicsIndex.aspx

AEM Applauds Congress For Approving Free Trade Agreements

AEM and its member companies applaud Congress for taking bipartisan action on the Free Trade Agreements for Colombia, Panama and Korea. The House of Representatives and the Senate both voted on Wednesday to approve the measures, which will now go to the president for his signature.

“Not only will these agreements help level the playing field for U.S. manufacturers, increasing their global competitiveness, but there is widespread agreement that these export agreements will help job growth and boost our overall economy,” said Dennis Slater, President of AEM. “High tariffs on U.S. exports have stunted job growth in manufacturing and other sectors. Seeing these agreements move forward is crucial for our member companies to have the ability to compete in vital global markets.”

As a critical initiative of AEM’s I Make America campaign, the association has worked directly and with industry partners urging Congress to quickly approve these long awaited agreements. “It is encouraging to see a bipartisan effort to move these through the legislative process,” Slater said. “We now look forward to a presidential signature on these agreements, and seeing them quickly put into force.”

Off-Road Equipment Manufacturers Meet With Gov. Romney To Discuss Strengthening The Economy, Exports

The Association of Equipment Manufacturers (AEM) and leaders of four equipment manufacturing companies today joined former Massachusetts Governor Mitt Romney at a manufacturing plant in Pataskala, Ohio to discuss ways to strengthen U.S. manufacturing in the global marketplace.

AEM member company business leaders from Ohio and Iowa shared their perspectives with Gov. Romney about the need for new manufacturing policies that would rebuild deteriorating roads, bridges and highways and help American manufacturers and farmers export their products to new and expanded markets around the world.

Gov. Romney spoke to employees at Screen Machine Industries (SMI), an American, family-owned manufacturing business that produces heavy equipment. SMI is a member of AEM and participates in the I Make America campaign to support manufacturing jobs.

In its effort to support America’s manufacturing sector, AEM launched a national grassroots campaign in 2010 called I Make America to give a voice to the men and women across the nation who work in manufacturing and agriculture. Thousands of people across the country have signed up to support this campaign, recognizing that infrastructure investment and export-friendly policies are two fundamental ways to generate economic growth and create jobs.

AEM member company leaders who participated with AEM in the discussion with Gov. Romney included:

  • Steve Cohen, President, Screen Machine Industries, Inc., Pataskala, Ohio – www.screenmachine.com
  • Dave Burdakin, President & CEO, Paladin, Cedar Rapids, Iowa and Akron, Ohio – www.paladinbrands.com
  • Mike Haberman, President, Gradall Industries Inc., New Philadelphia, Ohio – www.gradall.com
  • Ed Turner, President and CEO, Allied Construction Products LLC, Cleveland, Ohio – www.alliedcp.com