MILWAUKEE - In line with evidence of a slowing economy, U.S. construction machinery manufacturers expect smaller gains in industry business in 2001 in part because of concerns over growth and consolidation in the rental industry.
An annual Construction Industry Manufacturers Association forecast predicts growth of 2.3 percent for U.S. manufacturers in the year ahead, compared with estimated growth of 2.6 percent when final figures are completed for 2000.
The outlook for Canadian shipments is much brighter with manufacturers predicting a record 3.8 percent increase, compared with 1.2 percent this year. Similarly, for the rest of the world business is predicted to rise by 5.5 percent in 2001, compared with 4.9 percent for 2000.
"The demand is still there for both public and private construction," CIMA chairman Lex Taylor III said. "However, we're concerned that the actions of our federal government may go too far to slow down the economy."
The CIMA outlook is based on 69 types of equipment and the projections of construction equipment manufacturers by product type and world geographic region.
Looking ahead to 2001, U.S. equipment manufacturers expressed concerns over higher interest rates and fuel costs together with a decline in housing starts. Other concerns included the level of highway spending under the federal Transportation Equity Act for the 21st Century (TEA-21) and the continuing change in distribution patterns relating to the rental industry.
Manufacturers also said business will be affected by growing inventory levels plus excess rental units and an increased supply of used equipment.
"While the consolidation in rentals has slowed, there will probably be more merger activity in the future," Taylor said. "And manufacturers will also continue to consolidate as they look at complementary lines of equipment."
Rental Locations WOODCLIFF LAKE, N.J. - Ingersoll-Rand has acquired the I-R equipment inventory and rental fleet of Illinois-based Portable Tool Sales & Service.
The acquisition included Illinois locations in Villa Park and Springfield, which will now will operate as Ingersoll-Rand company-owned stores. Steve Dillon will oversee the operations.
