Rising Steel Prices Dampen Improved Construction Equipment Outlook
April 7, 2004 -While exports of U.S.-made construction equipment improved in 2003, manufacturers now face new challenges associated with rising steel prices.
According to the Association of Equipment Manufacturers (AEM), exports improved 7.44% as manufacturers shipped more than $6.84 billion worth of construction equipment worldwide last year. The improved export business follows overall yearly declines of more than 12.75% in 2002 and 5.9% in 2001.
Meanwhile, a complicated set of international and domestic factors has contributed to a surge in steel prices. Contributing to the problem are shortages of coke used to make steel, the strong demand for steel from China and India , and the weak dollar's impact on import prices.
"Positive economic indicators have recently encouraged a sense of optimism about the potential for a strong equipment industry recovery. However this optimism is guarded by the growing concern about steel costs and availability as manufacturers adjust to the forces of an increasingly global marketplace," said Dennis Slater, president of AEM.
These concerns were recently voiced to the House Small Business Committee staff, prior to its hearing on the subject, held March 10.
According to the Association of Equipment Manufacturers (AEM), exports improved 7.44% as manufacturers shipped more than $6.84 billion worth of construction equipment worldwide last year. The improved export business follows overall yearly declines of more than 12.75% in 2002 and 5.9% in 2001.
Meanwhile, a complicated set of international and domestic factors has contributed to a surge in steel prices. Contributing to the problem are shortages of coke used to make steel, the strong demand for steel from China and India , and the weak dollar's impact on import prices.
"Positive economic indicators have recently encouraged a sense of optimism about the potential for a strong equipment industry recovery. However this optimism is guarded by the growing concern about steel costs and availability as manufacturers adjust to the forces of an increasingly global marketplace," said Dennis Slater, president of AEM.
These concerns were recently voiced to the House Small Business Committee staff, prior to its hearing on the subject, held March 10.
