U.S. construction equipment exports dropped more than 38 percent in 2009 compared to the previous year for a total $12.8 billion worth of machinery shipped to other nations, with declines of between nearly 30 to 50 percent for major world regions, according to the Association of Equipment Manufacturers (AEM). South and Central America as well as Asia were among the regions experiencing the smallest 2009 yearly declines.
“The good news is that overall, quarter-to-quarter declines steadily improved, ending with a fourth-quarter 2009 gain of 26 percent over the third quarter,” according to the AEM. The trade association consolidates U.S. Commerce Department data for off-road equipment with other sources into quarterly export trend reports.
“Exports have literally been a lifeline for the construction equipment industry, which saw U.S. business plummet more than 40 percent last year and unemployment soar to more than double the national average,” stated AEM President Dennis Slater in a written statement. “Global trade has been a significant source of industry expansion in recent years, and many economies are now rebounding faster than the U.S.”
Slater provided additional commentary on the need for trade-friendly government policies:
“To help boost U.S. exports, it is essential that federal government policies make it easier for American companies to pursue international business, and for international buyers to more easily travel to the United States to examine and buy American products,” Slater said in the written statement.
“AEM applauds President Obama’s recent ‘National Export Initiative’ to promote trade, which includes expanded Export-Import Bank funding for small to medium-sized enterprises (SMEs) from 20 percent to 50 percent of budget,” he continued.
Slater says that many of AEM’s smaller companies increasingly rely on exports to keep their businesses operating. He adds that AEM has launched a pilot program with Ex-Im Bank to guide companies through the loan-application process and maximize their export opportunities.
