subscribe to ENR magazine subscribe
contact us
advertise
careers industry jobs
events events
FAQ
Dodge Data & Analytics
ENR Logo
SUBSCRIBE TODAY
& receive immediate web access
comment

Machinery Exports Bolster U.S. Economy

Text size: A A
Tudor Van Hampton
U.S. machinery exports rose 43% last year as construction starts remained sluggish.
Sany America Inc.
Sany late last month assembled its first excavator in the U.S. at its Peachtree City, Ga., plant.
----- Advertising -----

While U.S. construction starts slipped slightly last year, machinery exports grew by double-digit percentage points, with shipments to Canada, Australia and Latin America leading the way.

This 43% export increase, reports the Association of Equipment Manufacturers, follows a 28% rise in 2010 after a steep 38% decline in 2009.

"Export sales continue to help U.S. construction equipment manufacturers stay open for business and sustain American jobs, especially with the domestic construction sector still recovering," says Al Cervero, vice president of Milwaukee-based AEM.

The value of machines shipped to other nations was $23.5 billion, says AEM. Top countries taking delivery of U.S. machinery included Canada ($7.2 billion), Australia ($2.7 billion), Mexico ($1.6 billion), Chile ($1.3 billion) and Brazil ($951 million). Others worth noting were China ($903 million), Colombia ($811 million), South Africa ($683 million), Russia ($652 million) and Peru ($572 million).

Meanwhile, U.S. construction starts last year slipped 2% to $421.4 billion, following a slight 1% gain in 2010, according to McGraw-Hill Construction, which, like ENR, is a unit of the McGraw-Hill Cos.

Manufacturers remain bullish about exports in the next decade as the U.S. grows a weakened manufacturing sector. Last month, Caterpillar Inc. announced plans to break ground on a new factory in Athens, Ga., which will replace its small dozer and mini-excavator plant in Japan. At full capacity, which is expected by 2018, about 40% of the $200-million plant's output will be for export, says Peoria, Ill.-based Caterpillar.

Despite the sluggish construction activity in the U.S., Caterpillar and others also expect domestic business to pick up. Late last month, Sany America Inc. assembled its first excavator in a new domestic plant in Peachtree City, Ga. The first China-based equipment producer to assemble in the U.S., Sany built the $60-million plant to overcome political, economic and logistical hurdles associated with building machinery in China for sale in the U.S.

"This equipment is tailored to the demands of American operators, and it's assembled right here in the U.S.," says Jack Tang, president of Sany's U.S. operation.

Caterpillar expects to grow revenue this year by 10% or 20%, to between $68 billion and $72 billion, and spend $4 billion on new capital expenditures, Cat Chairman and CEO Doug Oberhelman told reporters this week in Chile. "At the moment, [economic growth in] Asia is dropping a little, Europe is in recession, and the United States is recovering quite a bit. … We're seeing a little more activity in China this year," Oberhelman told Reuters.

 

Keywords:

----- Advertising -----
  Blogs: ENR Staff   Blogs: Other Voices  
Critical Path: ENR's editors and bloggers deliver their insights, opinions, cool-headed analysis and hot-headed rantings
Project Leads/Pulse

Gives readers a glimpse of who is planning and constructing some of the largest projects throughout the U.S. Much information for pulse is derived from McGraw-Hill Construction Dodge.

For more information on a project in Pulse that has a DR#, or for general information on Dodge products and services, please visit our Website at www.dodge.construction.com.

Information is provided on construction projects in following stages in each issue of ENR: Planning, Contracts/Bids/Proposals and Bid/Proposal Dates.

View all Project Leads/Pulse »

 Reader Comments:

Sign in to Comment

To write a comment about this story, please sign in. If this is your first time commenting on this site, you will be required to fill out a brief registration form. Your public username will be the beginning of the email address that you enter into the form (everything before the @ symbol). Other than that, none of the information that you enter will be publically displayed.

We welcome comments from all points of view. Off-topic or abusive comments, however, will be removed at the editors’ discretion.