Demand for Construction Equipment Jumps 35 Percent in 2005

March 6, 2006 — U.S. construction equipment exports for 2005 increased 35 percent over the previous year as $12 billion worth of American-made machinery was shipped to countries across the globe, according to data recently released by the Association of Equipment Manufacturers (AEM). South America recorded the strongest gains (51 percent), while Central America experienced the smallest increase at 15 percent. The AEM international trade group consolidates U.S. Commerce Department data with other sources into a quarterly trends report.

 

Exports to South America grew the most in 2005 as the region took delivery of $1.6 billion worth of U.S. construction equipment or a 51 percent gain. Central America's purchases of $925 million represented a 15 percent increase compared to the previous year.

 

“In 2005 most of the equipment exported to Latin America was used primarily for general construction, transportation, and mining projects,” said AEM Assistant Director of International Marketing Arnold Huerta. “This trend is expected to continue as the region is forecast to grow in 2006 and nations inject more money into their infrastructure sectors.”

 

The top 10 country purchasers of U.S. construction equipment in 2005 were: (1) Canada - $4.1 billion, up 35 percent; (2) Australia - $1 billion, up 40 percent; (3) Mexico - $694 million • up 11 percent; (4) Belgium - $654 million, up 60 percent; (5) Brazil - $555 million, up 113 percent; (6) Chile - $514 million, up 46 percent; (7) Singapore - $507 million, up 126 percent; (8) China - $237 million, down 10 percent; (9) Japan - $236 million, up 59 percent; (10) South Africa - $222 million, up 44 percent.