A Manitou rotating telehandler.

The Association of Equipment Manufacturers (AEM) predicts growth in global construction markets will slow in 2007.

Construction machinery manufacturers that participated in AEM's annual outlook survey expect the overall US construction equipment business to grow 3.9 per cent for 2007, compared with 11.2 per cent in 2006. Business volume in Canada is predicted to grow 5.0 per cent in 2007, compared with 12.7 per cent in 2006. Other global markets are anticipated to grow 6.4 per cent in 2007, compared with 10.9 per cent in 2006.

The survey is the result of polls sent to AEM's construction equipment manufacturer members. It covers 17 whole machine product types and 24 attachment and component types, grouped into seven general categories.

Conducted during the third quarter of the year, it summarises manufacturers' estimates of year-end business volume for the current and following year. Percentages represent changes in unit sales.

AEM chairman Gary Shaheen said: "We are cautiously optimistic construction machinery sales will continue to grow through 2007, although at a more moderate pace than 2006. To put this in perspective, 2004 and 2005 sales were among the highest in recent years for the US industry."

Survey respondents ranked the state of the economy and consumer confidence as top factors influencing future construction equipment sales. Housing starts, highway funding, steel prices and energy costs were other key issues.

Shaheen said demand from China's booming infrastructure and equipment rental companies' fleet modernisation were positives for the industry.

Sales for the lifting equipment category are expected to gain 32 per cent by end of 2006 for the US, 28.5 per cent for Canada and 13.8 per cent for other world markets.

In 2007, sales are expected to increase 10.4 per cent in North America and 12.3 per cent for other world markets.

Lifting equipment includes telescopic handlers, rough-terrain forklifts, cranes, aerial lifts and boom trucks.

The complete survey will be online at www.aem.org under Industry Trends.