Slower growth

World construction equipment sales are expected to show double-digit growth in 2006 but these gains are not forecast to continue into 2007, according to the US-based Association of Equipment Manufacturers (AEM). Its latest Annual Business Forecast, predicts the US construction equipment market will grow +11.2% this year before falling to +3.9% in 2007.

The results of the survey suggest that construction equipment sales in Canada will show increases of +12.7% in 2006, while volumes in the rest of the world are expected to grow +10.9%. However, machine sales growth in Canada next year is likely to fall to +5.0% and sales growth outside North America is predicted to drop to +6.4%.

“Although the US economy is starting to show signs of slowing down, it has displayed surprising resilience,” said AEM chairman Gerry Shaheen. “The affect of the slowdown in the US housing market on construction equipment sales has been offset by the strength of non-residential construction, road building and sales outside the US.”