World Demand for Construction Machinery to Increase

Global demand for construction machinery is forecast to climb 6 percent per year to $131 billion in 2011, according to a study by Cleveland-based market research firm the Freedonia Group.

Sales will be fueled by healthy economic growth, ongoing industrialization efforts, rising populations and higher standards of living in developing parts of the world. China, India, Mexico and Russia will register some of the strongest sales growth, with China alone accounting for 31 percent of all additional construction machinery demand through 2011.

Although advances will be less robust than in developing nations, construction equipment sales will rise in developed countries as well. More stringent off-road diesel engine emissions standards in the European Union, Japan and the U.S. will also make new machinery more expensive and contribute to value gains through 2011. However, new housing starts are expected to decline in the U.S. and Japan, dampening increases in construction equipment demand in these nations.

The strongest sales advances will be recorded by mixers, pavers and related products, benefiting from ongoing infrastructure development efforts in industrializing parts of the world, according to the study.

The full study, “World Construction Machinery,” is available for purchase through the Freedonia Group at www.freedoniagroup.com.