|Construction Market Trends
Boom and bust: The construction market in the US saw strong growth in value during the period 20042007. However, the recession, which was rooted primarily in the housing market, led to a drastic decline in new construction value during 2008 and 2009.
Mixed fortunes by sector: While contractors on infrastructure projects are faring well, residential and commercial building contractors are finding times tough. For example, Centex Corporation, a leading home builder in the US, announced poor performance and merged with Pulte Homes in 2008 to achieve cost savings in the tough market.
Federal support: The US construction industry will receive about 130 billion as a part of the 789 billion economic stimulus package announced by President Obamas American Recovery and Reinvestment Act of 2009. This will be primarily in the form of state funding for transportation, power and water & sanitation, which will keep up spending on public investments and boost infrastructure projects in the US
The three Is to prosper: Over 20092014, infrastructure construction, industrial construction and institutional construction are expected to perform well compared to the commercial and residential segments. The industrial segment is expected to see particularly good growth of 11.9% per year for 20092014.
Construction Equipment Trends
Knockon from weak construction: The construction equipment market primarily follows infrastructure and industrial construction. Given the present economic condition in the economy, all projects in the US, residential, nonresidential and infrastructure are seeing a decline in spending. Although the federal stimulus fund is keeping up infrastructure projects, it is not enough to compensate the declines from state and private players.
Flat growth to 2014: Given the slow market outlook for the construction industry in the US, the machinery market in the country is not likely to register sustainable growth prospects in the next five years. In fact, the market is expected to remain flat at a 0% CAGR till 2014, after which it is likely to register improvement.