WORLDWIDE DEMAND FORECASTED TO KEEP ON RISING

World demand for construction cranes will rise to $8.7bn a year by 2001, according to Cleveland-based market researcher Freedonia Group, with not even the Asian currency crisis stalling growth.

It calculates that worldwide demand for construction cranes has risen already from $4bn in 1987 to $7.3bn in 1996.

Freedonia’s report says: “World demand for heavy construction equipment is forecast to increase 4% per year to just under $87bn in 2001. Growth will be driven by continued economic expansion in Asia and South America and will be helped by improved economic conditions in the Middle East and Eastern Europe.” In Asia and Oceania (excluding Japan), demand has risen from 1987’s $764m to $2.3bn in 1996. In spite of the currency crisis, from which Freedonia has assumed the region will take only a year to 18 months to recover, demand for construction cranes will rise to just about $3bn by 2001. It will remain the fastest growing region in demand for heavy construction equipment, according to the report.

The expanding rent-to-rent market in North America and Western Europe is not expected to have a significant negative impact on new equipment sales. This is because the expanding markets in South America and Asia will generate more than enough demand for used equipment to offset increasing supplies of previously rented equipment in more developed economies, according to the researchers.

In North America demand from the construction industry for cranes has risen from $961m in 1987 to $1.26bn in 1992 and $2.37bn in 1996, and will reach $2.48bn by 2001, Freedonia claims.

In Europe demand has risen from $1.9bn in 1987 to $2.1bn in 1996, and will reach $2.62bn by 2001.

Freedonia’s report, World Heavy Construction Equipment, is available for $3,800. For further details, fax: (+1) 216 921 5459.