The Decline of US Heavy Machinery Exports

bulldozerIn 2014, with the help of experienced freight forwarders, US companies shipped over $17 billion worth of construction equipment overseas. However, this total value represents a 13.2% year-over-year decline in heavy machinery shipping overseas. The declining interest in exports of construction equipment from the US has been common for some time. For the past two years, this industry witnessed non-stop quarterly declines. This decline occurred to the international shipments of all types of machines, including excavators, bulldozers and agricultural equipment. All of these details were obtained from the American Equipment Distributors Association.

The decline of US exports of construction equipment to all regions of the worlds witnessed mass declines in 2014, especially in Europe and South America. The three largest nations that receive construction equipment from the US (Canada, Mexico and Australia) were all recorded for a decrease in machines from the US during 2014. Saudi Arabia, which is not a top destination, increased their imports of US construction equipment by 10% in 2014.

The reasons for this decline goes beyond ocean shipping and transportation. It turns out the economy is playing the biggest role in this factor. The US economy is stronger than most other nations. This includes a stronger US dollar that many other nations cannot compete with. As a result, many foreign companies have compressed budgets. With less spending on major projects, there is a declining need in some areas for construction equipment. Hopefully, these trends will turn around in 2015 and the US machinery export industry will experience a new increase in demand.

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