Posted on 17 September 2010
Overall exports of U.S.-produced construction and agricultural equipment increased globally during the first half of this year when compared with 2009. At the same time major equipment manufacturers – such as Caterpillar – are reporting construction and mining equipment sales increases in specifics nations around the globe.
Export purchases of U.S.-made construction equipment reached $7.4 billion during the first six months of 2010 – a 15 percent rise in construction equipment export purchase activity when compared to the same period in 2009 – according to the Association of Equipment Manufacturers (AEM).
“With U.S. markets still sluggish, they (the recent numbers) underscore the importance of global trade to the construction equipment industry,” said Al Cervero, senior vice president of AEM. “Export business helps U.S. manufacturers keep their doors open.”
The top destinations for U.S. construction machinery exports spanning January 2010 to June 2010 were: Canada, $2.4 billion; Australia, $625 million; Mexico, $549 million; Chile, $462 million; Brazil, $376 million; China, $242 million; Colombia, $189 million; South Africa, $173 million; Peru, $168 million; and Belgium, $153 million.
Exports to Central America and South America each gained 14 percent compared to midyear 2009 – $753 million for Central America and $1.4 billion for South America. Asia’s export purchases increased 5 percent to $984 million.
Australia/Oceania took delivery of 37 percent more American-made construction machinery – for a total $679 million – while exports to Canada increased to $2.4 billion, a 32 percent gain.
Midyear shipments of U.S.-made agricultural equipment totaled $4.9 billion, a gain of 4 percent compared to January through June 2009.
The top destinations for U.S. agricultural machinery exports during the first six months of 2010 were: Canada, $1.8 billion; Mexico, $392 million; Australia, $350 million; Germany, $216 million; China, $184 million; France, $173 million; United Kingdom, $151 million; Brazil, $133 million; Netherlands, $118 million; and Russia, $111 million.
U.S. exports to Central America and Asia showed the most growth – a gain of 44 percent for Central America, with export purchases totaling $466 million; and an increase of 29 percent for Asia for its export purchases of $426 million.
South America took delivery of $370 million worth of U.S.-made agricultural equipment, an increase of 18 percent. Exports to Canada grew 15 percent and totaled $1.8 billion, while Australia/Oceania’s purchases of $377 million represented a 3 percent increase.
While export purchases of U.S.-produced construction equipment and agricultural equipment increased globally – due to activity within a number of nations and regions – two continents experienced declines in U.S. export purchase activity.
Construction equipment exports to Europe were flat during the first half of 2010, with exports totaling $777 million. Agricultural equipment exports dropped 19 percent to $1.4 billion during the same period.
In Africa construction equipment exports declined 20 percent to $423 million, while agricultural equipment exports dropped 13 percent to $116 million.
Eyeing only the second quarter of 2010, new construction and mining equipment sales activity increased globally, according to Caterpillar Inc.
In North America, the equipment manufacturer saw increases in the sales of quarry products, mining equipment, and forestry products. Reasons cited for this included: U.S. nonmetals mining and quarry production increasing 6 percent, Canadian quarry output rising by 2 percent, an 8 percent increase in U.S. metals mine production, and a combined 49 percent increase in U.S. and Canadian lumber production.
Of the Latin American nations, Brazil had the largest increase in sales volume during the second quarter – the result of a 16 percent increase in industrial production and a 17 percent rise in mining output.
Despite a recent earthquake’s unfavorable impact on the Chilean economy, sales volume in that nation increased significantly.
In the Africa/Middle East region, the economic environment was favorable with recoveries underway in the large economies of Turkey and South Africa. Favorable metals prices positively affected mining production and oil production in these two nations.
China experienced a large increase in construction equipment sales volume, with deliveries remaining near record highs. During the second quarter, industrial production was up 16 percent, and construction spending and coal production increased by more than 20 percent.
Construction spending also increased in Indonesia leading to a gain in equipment sales volume.
Contributing to a growth in Australian equipment sales volume was a 31 percent rise in housing permits and an increase in coal production.