The global sales of the construction equipment market are still showing growth. The predictions are that the market is expected to stabilize in the second half of 2019. The demand for heavy equipment has seen worldwide growth since 2017, expanding by over 25% due to a period of decline in the years 2012 to 2016. 2018 also showed double-digit growth, and over a million units were sold, with a total retail value of nearly $1 hundred billion US.
One of the things that is causing this growth to stall is the decrease in construction spending in the US and the instability of the political situation in the UK. In the third quarter of 2018, we saw a decline in spending and investments in infrastructure. There is a dire need for spending in that sector because the past four months have revealed that the much-needed investments in infrastructure have stalled or even shrunk. Consequently, contractors have begun losing employees, and infrastructure projects are failing to meet their deadlines.
The spending of public money in the US has greatly increased, while other categories of spending like infrastructure have declined. Even though President Trump campaigned strongly on infrastructure investments, so far, no large infrastructure investments have taken place. Nevertheless, the predictions for the following years are positive and there will be growth - maybe not as explosive as in the few years following the financial crisis, but unforeseen positive news from the Balkans will prove to be beneficial in the future. And you might not expect it, but Italy is bound to show growth as well.
The need for renewal of infrastructure is dire since maintenance has been at a standstill for almost a decade. This maintenance will require an immense amount of construction equipment, and equipment rental companies will benefit from that.
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Michiel Toppers
