Exports of US-made construction equipment has seen a fall of 25% in the first three quarters of 2016, compared with the same period in 2015, according to the Association of Equipment Manufacturers (AEM).
The US-based association, which represents the construction equipment manufacturing industry, cited figures from the US Department of Commerce, revealing a total of US$ 8.2 billion of US-made equipment shipped to global markets during the review period.
The list below shows that the US dollar value of US-made equipment shipped to other countries has fallen in every major world region:
- 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
Benjamin Duyck, director of market intelligence at AEM, said, “For the past 15 quarters US 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 US manufacturers less competitive in the global marketplace. Of course, the strong currency is a problem that plagues all US 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 US 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 US and US stocks, driving up demand for our dollar, inadvertently affecting our competitiveness abroad.”