NORTH AMERICAN MACHINERY MARKET PROJECTIONS 2010 – 2011 (% CHANGE)
2008-2009 2009-2010 2010-2011 2008-2009 2009-2010 2010-2011
Source: Yengst Associates
whole housing industry from moving
forward. This trend could continue for
the next year and possibly for several
years, which obviously would have
a major negative impact on housing
contractors and construction, and be
felt all the way down to machinery suppliers and their vendors.
As we stand today, I doubt that
housing starts will see any real growth
until late 2011 or early 2012, which is
a long way down the road.
On the nonresidential construction
side, things are really slow now and
getting slower. States are out of money
and budgets are strained to the limits
in many places because of weaker tax
collections. Highways and maintenance
of our roads and streets are suffering.
We continue to hear many stories
from the management of some big
OEMs how well their companies are
doing and that the turnaround has
occurred or is happening. Sales are
up and profits are even better, and
I applaud those suppliers that are
having a better year. But what we are
hearing hinges on growth in Asian
markets and new business in emerging markets. That is not the situation
in North America and I doubt that it
fits Europe either.
Demand for mining equipment has
also been in the news because of
high commodity prices and the need
for vast quantities of raw materials for
those emerging countries. So com-
panies offering mining machines are
seeing continued activity.