Mixed fortunes for heavy mobile equipment industry

According to analysts with Great American Group, used construction equipment demand has remained steady in recent months after small declines through the second half of 2012.

An improvement in new housing starts, continued strength in the oil and gas sector, and continued infrastructure spending has bolstered demand in recent months and expectations are for this trend to continue for the foreseeable future.

However, slower than anticipated economic growth has impacted freight delivery across the country. Rolling stock and intermodal equipment demand has been flat in recent months, although Great American Group analysts remain optimistic about future potential gains.

The demand for new and used freight cars has declined slightly, and forecasts indicate that demand will remain somewhat lacklustre through 2013 before picking up in 2014. Similarly, although sales for new class 8 tractors have experienced year-over-year declines, sales have rebounded from the levels witnessed at the end of 2012 and have increased month-over-month since February.