US construction equipment exports dropped over 38% in 2009 compared to the previous year for a total of USD12.8 billion of machinery shipped overseas, with declines of between 30 to 50% for major world regions.

The good news is that the fourth quarter of 2009 ended with a 26% gain over the third quarter, according to the Association of Equipment Manufacturers (AEM). AEM consolidates US Commerce Department data for off-road equipment with other sources into quarterly export trend reports.

"Exports have literally been a lifeline for the construction equipment industry which saw US business plummet more than 40% last year and unemployment soar to more than double the national average," says AEM president Dennis Slater.

"Global trade has been a significant source of industry expansion in recent years and many economies are now rebounding faster than the US," he adds.

Slater says to help boost US exports, it is essential that federal government policies make it easier for US companies to pursue international business and for international buyers to travel easily to the US to examine and buy American products.

"AEM applauds President Obama's recent "National Export Initiative" to promote trade, which includes expanded Export-Import Bank funding for small to medium-sized enterprises from 20% to 50% of budget.

"Many of our smaller companies increasingly rely on exports to keep their businesses operating, and we have launched a pilot program with Ex-Im Bank to guide companies through the loan-application process and maximize their export opportunities."

AEM also welcomed the Obama administration's renewed focus on revamping the US visa-application process, saying international attendance at its trade shows would be "much higher" if qualified buyers were not subjected to an overly-complicated and seemingly arbitrary process.

"We continue to hear numerous complaints of long waiting times and denial after a superficial review. We have experienced up to a 20% refusal rate for our CONEXPO-CON/AGG construction show, and we estimate our recent AG CONNECT Expo agriculture show lost significant international attendance because of visa issues. For example, with one potential Indian delegation of about 80 business people, some 90 percent were denied visas," Slater says.

Export sales to South America dropped 29% in 2009 for a total of USD2.4 billion compared to 2008. Central America took delivery of USD1.3 billion of US construction equipment, a 34% decrease, and exports to Asia declined 35% in 2009 for a total of USD2 billion.

Export business to Europe decreased 51% to USD1.5 billion in 2009 and construction machinery exports to Canada dropped 41% for a total of USD3.7 billion.

Africa recorded purchases of USD986 million worth of U.S. construction equipment, a drop of 29%, while exports to Australia/Oceania decreased 46% to USD962 million for 2009.

The top buyers of US-made construction machinery for 2009 were: (1) Canada - USD3.7 billion, down 41%; (2) Mexico - USD1 billion, down 28%; (3) Australia - USD922 million, down 47%; (4) Chile - USD763 million, down 16%; (5) Brazil - USD513 million, down 29%; (6) China - USD487 million, up 15%; (7) Colombia - USD392 million, down 17%; (8) Belgium - USD360 million, down 48%; (9) South Africa - USD353 million, down 49%; (10) Peru - USD319 million, down 20%; (11) Saudi Arabia - USD238 million, down 44%; (12) Singapore - USD214 million, down 48%; (13) Russia - USD209 million, down 58%; (14) India - USD181 million, up 55%; (15) Venezuela - USD165 million, down 57%.