Construction equipment dealers are looking forward to improving trends in 2012 while acknowledging the challenges facing the industry, according to survey results released today by GE Capital, Dealer Finance.
Forty percent of respondents said they expect sales to increase 3%-5% this year, while 25% said they expect sales to increase 6%-8%. A full 77% said the best time to increase inventory is within the first half of 2012.
At the same time, 57% cited slack demand for new construction – both residential and commercial – as the biggest hurdle that construction equipment distributors have to overcome this year.
Slightly more than half of respondents said improvement in the U.S. economy will have the greatest impact on the construction industry. The other important factors affecting the industry are access to credit for end users (23%) and reauthorization of the federal highway spending bill (20%).
When asked what single category of construction equipment they believe will be in greatest demand this year, 37% cited earthmoving equipment and 23% cited specialty equipment such as pavers, compactors, drills, crushers and grinders.
The full survey results are available at gelending.com/.
To stay on top of developing trends, participants can sign up for GE Capital’s Construction Industry Research Monitor here: americas.gecapital.com/.
“We’re dedicated to helping our customers be successful,” said Kristi Webb, commercial leader of GE Capital, Dealer Finance. “In addition to financing, we provide construction industry insights and expertise to help dealers and end-users tackle their biggest challenges so they can thrive in the year ahead.”
The Construction Equipment Distributor Survey of 65 respondents was conducted Jan. 18-19, 2012. Respondents included a variety of construction industry participants.
About GE Capital, Dealer Finance
GE Capital’s Dealer Finance business provides commercial leases and loans ranging from $5,000 to $25 million for the wholesale and retail financing of equipment to thousands in North America in over 12 industries. With long-term relationships and dedicated channel support, Dealer Finance works with small, medium and large enterprises as well as state and local governments. From web-based application submittals to online account management, its dedicated industry professionals bring knowledge and expertise to every relationship.
GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit gecapital.com or follow company news via Twitter (@GECapital).
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