N.A. construction equipment sales top other major markets
03 April 2023
Global construction equipment sales fell 7 percent last year from the record high established in 2021, according to the latest information from Off-Highway Research. The bright spot, however, was North America, which came in as the best performer of the major markets last year, with an 8 percent increase in sales to take demand to a record high of 318,855 machines sold. Compact tracked loaders are now firmly established as the most popular equipment type in the region and mini excavator sales have also grown to a significant level. Sales of these machines have largely been at the expense of skid-steer loaders and backhoe loaders.
Although a modest 1 per cent decline in sales is expected this year, the market will still enjoy the second highest volumes ever seen. The long lead times for equipment mean that suppliers are confident of sales well into the third quarter of the year, even though rising interest rates are starting to cool-off the housing market.
While this is expected to lead to a fall in sales of smaller equipment types, infrastructure investment is on the rise in the region, thanks in part to the stimulus plans which were put in place during the pandemic years.
By their nature, machines used in infrastructure construction are higher value/lower volume than the compact equipment sales which are driven by residential building. This is therefore expected to lead to a shallow dip in sales from 2023-2026. However, North America suffers from a shortage of housing, and this is expected to stimulate an upturn in compact equipment sales towards the end of the forecast period.
A full discussion on the state of the North American construction equipment market and the outlook to 2027 is available to subscribers to Off-Highway Research’s North American Service and North American Database Service. For more information about Off-Highway Research’s reports and data, contact [email protected] or click here.