Global Industrial Projects Expected to Pick Up, Predicts AEM
The Association of Equipment Manufacturers (AEM) recently held their quarterly Equipment Market Outlook webinar, sponsored by manufacturing technology advisor Net at Work, which examines key issues affecting the construction and agriculture sectors. During the Q4 event, which took place in November, industry experts Danny Thomas of GlobalData, Charles Hart from Fitch Solutions, and Craig Frizzell with AEM presented the following updates:
- Global construction – Overall, the sector slowed in 2023 with growth in China and India and challenged by slowing most construction sectors of North America, Europe and Australia. A rebound in most construction sectors is predicted for next year. Notably, industrial projects are expected to increase by record numbers in 2023—more than any other category—before undergoing continued growth in 2024.
- US construction – In the past twelve months, growth in this market was due to nonresidential projects, which showed a 17.6% year-over-year increase as of August. Residential construction spending decreased by 3% for the same period, underscoring the overall weakness in the housing market.Next year, construction projects in manufacturing, transportation infrastructure, and clean energy infrastructure could see increases. However, challenges such as lingering volatility in material prices, rising labor costs, ongoing shortages of skilled labor, and high interest rates are expected to continue to affect construction.
- Agriculture costs – After an announced ban on the export of non-basmati rice from India was announced in July, rice prices rose by nearly 10 percent in August. At the same time, prices for the three major field crops—corn, soybeans, and wheat—are expected to fall.
Stated Hart, “At the global level, the most obvious impact of the global rice deficit has been, and still is, decade-high rice prices.”
Apply this business intelligence to support your equipment operations through technology by connecting with manufacturing technology advisor Net at Work at this year’s Association of Equipment Manufacturers Annual Conference.
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