Manufacturers will recover, as improved construction markets fuel demand for cranes.
Los Angeles, CA (PRWEB) February 01, 2012
An improvement in construction will facilitate growth for the Truck-Mounted Crane Manufacturing industry over the next five years. Truck-mounted cranes and their smaller counterparts, boom trucks, provide mobile lifting solutions for projects like infrastructure and apartment towers. According to IBISWorld industry research analyst Josh McBee, “while these types of projects require the industry's lifting capabilities, activity regarding the actual projects has recently decreased.” Fortunately for the industry, previous and subsequent growth periods have managed to somewhat offset revenue losses recorded as a result of the recession reducing construction activity. Consequently, IBISWorld expects revenue for the Truck-Mounted Crane Manufacturing industry to fall at an annualized rate of 1.4% during the five years to 2012.
Construction activity on many projects was halted during the recession, as firms lacked access to credit to buy or rent machinery for their job sites. As a result, the US economy entered the Great Recession. Rental companies lacked contractors who were willing to rent out truck-mounted cranes and boom trucks, and wholesalers lacked buyers for these products. In the wake of depressed construction activity, downstream demand for truck-mounted cranes dropped, and industry revenue fell an estimated 33.4% in 2009. Export sales suffered as well, with high steel prices raising product prices and offsetting the cost advantages created by the devalued US dollar. While imports are characterized by lower price tags and deep market penetration, they also experienced diminished sales from 2008 to 2009.
Since 2010, the industry's picture has begun to brighten. According to McBee, “heavy construction activity received a boost from the federal government's stimulus for infrastructure projects.” Further, in 2011, apartment construction exhibited double-digit growth off of recessionary lows. As a result, downstream demand from wholesalers and rental firms increased. In 2012, IBISWorld expects improving construction conditions will lift industry revenue by 6.2% to an estimated $1.7 billion. Through 2017, continued recovery from recessionary lows, rising replacement demand and evolving emissions compliance will likely drive revenue growth. Further, construction activity has slowed in developed markets, so global machinery manufacturers have turned to emerging markets in Asia, Eastern Europe, the Middle East and Latin America for growth. With the economic recovery in its early stages, exports will be a key driver of industry growth in the next couple of years. China, Latin America and the Middle East will likely be the fastest growing markets, with strong public expenditure on major infrastructure projects stimulating demand for construction equipment. Major player Manitowoc has also highlighted Mexico, Canada and Central and South America as opportunities for future growth.
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This industry manufactures truck-mounted cranes. Truck-mounted cranes are designed to provide simple set-up and long-reach, high-capacity booms. These cranes can travel from site to site at highway speeds and are suitable for urban and suburban uses. The industry includes all-terrain cranes and boom trucks; however, rough-terrain cranes are excluded.
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