SUGAR LAND, TX--(Marketwired - Aug 5, 2016) - Researched by Industrial Info Resources (Sugar Land, Texas) -- Industrial Info Resources recently released its North America Heavy Lifting & Material Handling Equipment Spending Forecast (2009-2020). Despite continued market uncertainty, the forecast highlights the North America industrial market continuing to present a sizeable demand profile of spending for the heavy lifting and material handling equipment (HLMHE) market out to 2020.
Current spending projections for the 2009-2020 historical and forecasted outlook is based on analysis and modeling of the 77,000 active and completed capital and maintenance projects, totaling almost $3.3 trillion worth of investment in North America. The forecast highlights a spend demand outlook for HLMHE of some $7.96 billion between 2016 and 2020.
Despite the continued pressure on key consuming sectors, the forecast period shows a compound annual growth rate (CAGR) of about 49% over the 2016-2020 period, or a 14% increase in spending demand for HLMHE on the $1.45 billion estimated for 2016, versus the $1.65 billion total projected in 2020. The forecast also tracks spending demand historically back to 2009, which has shown a comparative CAGR of 71% over the 2009-2015 period and reflects the continued pullback in project spending currently being seen in some sectors going forward.
Demand for HLMHE associated with capital projects being tracked (which consist of grassroot construction, unit additions, plant expansions and other in-plant capital projects) accounts for 61%. Spending on the maintenance, repair & overhaul of HLMHE also looks strong and accounts for $3.1 billion over the forecasted period.
Industrial Info's forecast model is designed to provide the necessary level of granularity required to support fact-based and data-driven input for strategy & planning and market sizing initiatives. Spending intelligence has been gathered across nine different industries and for 12 different HLMHE equipment types via extensive telephone-based surveys from operational plants and active projects. The forecast is segmented by Overhead Lifting Equipment, split by Trolleys, Rigging Equipment, Nylon Slings and Overhead Cranes, with this category further split by Bridge & Gantry Cranes, Load Chains, Manual Hoists and Power Hoists, and finally Balancers and Winches.
The forecast shows that Overhead Cranes account for 91% of the spending demand between 2016 and 2020, with the biggest component of this being made up by Bridge & Gantry Cranes at 69%, or $3.75 billion. Another category within this group is Power Hoists, which accounts for 12.3% or just over $1 billion.
The forecast model has been created specifically to size the North America market, but can be further adapted and expanded to other market regions and countries or globally on request.
Industry Spending Drivers
Despite continued low Metals & Minerals commodity prices continuing to push much of the large grassroot projects off most planned budgets, there are still a large number of mining projects active and being planned that are associated with replacing depleting reserves. There is also the shift in the composition of capital spending into more process improvements, upgrades and production optimization. This continues to shape spending demand for HLMHE out to 2020 within the North America Metals & Minerals to a projected $2.2 billion or 28% of the total 2016-2020 spending forecast.
Industrial Manufacturing, which is the biggest spender on HLMHE, accounts for 31% of the spend forecast. The combination of a steadily increasing stock market along with low fuel costs drove capital spending and also attracted reshoring at levels not seen since before the Great Recession. Industrial Info expects the Automotive Sector to be a big contributor going forward, even though the sector has continued to move away from constructing grassroot plants and has, instead, focused on retools, revamps, expansions and additions at existing plants. This is not likely to change significantly going forward under current market conditions. Other key drivers are the Transportation Systems sector, which includes freight rail, passenger rail, and inland and deepwater ports, which are trending to remain the highest-spending sector among all the sectors that make up the Industrial Manufacturing Industry. Project spending within the Heavy Manufacturing sector had previously been driven by supplying and supporting the oil & gas sector. While the need for drilling equipment and other associated equipment is tailing away, some activity continues along these lines, but the focus has shifted to supporting the aerospace, shipping and rail sectors. There is $2.47 billion of spending demand projected between 2016 and 2020.
The U.S. Chemicals sector continues to move from strength to strength. The prolonged outlook of plentiful natural gas supply continues to promote additional grassroot and major unit additions across the U.S., particularly in the Midwest and Gulf Coast regions. Investments in key building-block chemicals like ethylene, ammonia and methanol will continue to dominate the scene of major projects. Even as new capacity that began construction in the last two years progresses swiftly towards completion, new and additional capacity announcements continue to be planned out to 2020, supported not only by domestic producers but foreign developers looking to capitalize on the cost-advantage available from shale gas supply. The 2016-2020 spending forecast on HLMHE is around 15% of the total demand, accounting for around $1.23 billion.
The Power Generation market accounts for 10% or $786 billion of the 2016-2020 spending forecast. The sector is undergoing a transition as demand for electricity is expected to remain flat over the coming decade due to increasing levels of energy efficiency measures and modest economic growth. Increasing pressure on coal-fired fleets is resulting in greater levels of in-plant capital spending, with more grassroot natural gas-fired projects being developed to replace coal-fired fleets that are uneconomical to make compliant with the wave of environmental mandates being directed at them. Renewal of the wind Production Tax Credit (PTC) and the solar Investment Tax Credit (ITC) continues to push substantial momentum in the new build renewables project space. Spending estimates on HLMHE are expected to show a slowdown of -12% CAGR over the 2016-2020 forecast period from $160 billion estimated for 2016, down marginally to $153.5 billion in 2020.
To learn more about this or other equipment forecasts, contact customer service by phone at (800) 762-3361.
5-year Historical and 4-year Forecasted spending split by Capital & Maintenance (2009-2020)
Covers spending demand segmented across 11 heavy lifting & material handling equipment types
Spending can be segmented across nine industries by equipment type and/or industry
Spending can be further segmented by Country /State / Province or Market Region for North America
Available as an online interactive analyzer tool, or as datasheets completed with pivot tables
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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the www.industrialinfo.com "Contact Us" page.