The demand for heavy machinery around the globe is on the rise. Boosted by government spending on infrastructure, agriculture, and energy generation, the market for new and used construction equipment is growing every year.
Global demand for heavy machinery is expected to reach $193 billion by 2022 with a CAGR of 7.6% from 2016 to 2022. North America will see the second highest demand in the segment after Asia Pacific region.
The GDP of the United States is $18 trillion making it the world’s largest economy. Heavy investments in construction of world class road transport, airports, and rail infrastructure has contributed to businesses flourishing in the country.
The regional demand for heavy machinery will be attributed to the amount of government spending on local infrastructure and private investment in expansion and capacity edition.
The government further aims to expand the size of the U.S. economy. This would mean a sizable portion of expenditure would come in the form of infrastructure spending, pushing up the demand for heavy machinery.
Earlier this year, the State of Pennsylvania laid out an ambitious plan to spend $4.5 billion over a period of four years.
This would be dedicated to infrastructure spending, road upgrades, and large scale transit projects.
In addition, the government would also create a dedicated fund for businesses engaged in infrastructure.
This will spur the demand for new construction equipment as well as used construction equipment.
There are more than 200,000 workers employed in construction activities in Pennsylvania. This contributes a sizable portion in the GDP of the state.
Like the State of Pennsylvania, other states also have ambitious plans to spur growth. This would mean an upsurge in demand for heavy machinery.
Increase in government expenditures in agriculture, transport, energy, and IT sectors provides an opportunity to construction equipment manufacturers and sellers.
Construction equipment like excavators, trenchers, bulldozers, backhoe loaders, and tower cranes are expected to be in high demand as big projects make use of most of these equipment.
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