News in the Construction Equipment Industry
Need a quick update on what happened last week in the construction industry? Every Monday we will provide a brief overview of some of the top stories for your consumption.
In late December 2012, CNH announced that it will be separating itself from Kobelco Construction Machinery on January 1, 2013. CNH plans to continue to manufacture hydraulic excavators at certain locations using current Kobelco technology under the new, non-exclusive licensing and supply agreements. Select models will also be manufactured from Kobelco in Japan for no less than five years and component parts no less than ten years. Full-sized excavators which feature Kobelco technology will be marketed under CNH’s New Holland Construction brand.
Despite construction markets falling short of expectations in 2012, each market is “hopeful that 2013 will be more than a transition year to robust construction activity and growth.” The remodeling market is expected to foresee the most growth in 2013 when compared to 2012, followed by the water infrastructure market. Material pricing is expected to increase with a net of 80 percent.
As we rang in the New Year, Congress passed the fiscal cliff deal; a deal that construction industry experts like Associated General Contractors of America (AGC) say have already had an impact on construction employment in most states in December 2012. The AGC ran a survey that found 54 percent of construction business owners had made business decisions based on the threat of the fiscal cliff; finding that 32 percent had already reduced their workforce and 67 percent had postponed hiring. Further survey results and other information can be found at the link below.