Understanding the Future Trends: A Broader Look at the North American Construction Equipment Industry
In our last article, we explored upcoming trends in the equipment rental industry. This month we are going to investigate how these trends and others are affecting the construction industry as a whole.
The North American construction equipment industry has always been a dynamic and essential part of the region’s economy. And while the heavy equipment may be the backbone of modern construction projects, it’s products like our LED light towers, generators, heaters and pumps that are the real quarterback of a construction site.
Today we will explore the status of the industry, including some facts and statistics that may surprise you, and look ahead to the upcoming trends that will shape the industry’s future. And for those seeking generators for sale in Texas, the greater United States and Canada, we’ll explore how these trends may impact the availability of such equipment.
Now, let’s delve into some eye-opening facts and statistics about the North American construction equipment industry that readers may not be aware of:
- According to StatCan, sales of construction, forestry, mining and industrial machinery and equipment wholesalers in Canada increased by 26.4 percent in 2022 compared to 2021.
- In 2020, the global construction equipment market was estimated to be valued at 140 billion U.S.D with the North American market estimated to be the second largest market for construction equipment worldwide.
- After reduced operations during the coronavirus pandemic led to a dip in the market, the equipment rental market size in the United States recovered in 2021. It has since grown by three percent to 47.8 billion U.S.D. By 2024, the U.S. equipment rental market is expected to exceed the highest level recorded in 2019.
Upcoming Trends in the Industry
The North American construction equipment industry is poised for significant changes in the coming years. Here are some trends to watch out for:
- Electrification: As the world seeks to reduce carbon emissions, the construction equipment industry is embracing electrification. Electric-powered machinery is quieter, produces zero emissions on-site, and reduces operating costs in the long run.
- IoT and Telematics: The Internet of Things (IoT) and telematics are transforming how construction equipment is monitored and managed. Real-time data on equipment performance, location, and maintenance needs are becoming essential for optimizing operations. The construction equipment itself is becoming increasingly sophisticated, with the integration of technologies such as GPS, telematics, and automation. These innovations are continuously enhancing safety, efficiency, and project management.
- Autonomous Construction Equipment: The concept of autonomous construction equipment is gaining traction. Self-driving machines can improve safety and productivity by reducing the need for human operators in hazardous environments.
- Sustainability and Green Building Practices: Construction equipment is responsible for a substantial portion of carbon emissions. As a result, there is growing pressure on the industry to adopt cleaner and more sustainable technologies and green building practices. Equipment manufacturers are responding by developing eco-friendly machines and technologies.
- Equipment Rental Market Growth: The rental market for construction equipment is on the rise. As companies look for ways to reduce costs and increase flexibility, they are turning to rental solutions. More construction companies are recognizing the benefits of renting, especially for short-term or specialized projects. This trend is expected to continue in the coming years.
- Circular Economy Initiatives: Construction equipment manufacturers are exploring circular economy initiatives, focusing on recycling and refurbishing equipment to reduce waste and resource consumption.
- Addressing Equipment Theft: Construction equipment theft is a pervasive issue. According to the National Equipment Register, equipment theft costs the industry billions of dollars each year. This highlights the importance of security measures and tracking systems.
- Economic Impact: The construction equipment industry contributes significantly to the North American economy, accounting for billions of dollars in annual revenue and employing millions of people.
Trends in Action: Will the availability of generators for sale be impacted?
In this real-life example we explore how these trends will affect the availability of generators for sale in Texas. Texas is known for its diverse construction projects, ranging from urban development to oil and gas exploration. Using the trends outlined above, the availability and usage of generators in the state are likely to be influenced in the following ways:
- Electrification: The shift towards electrification may lead to the increased use of electric generators or hybrid systems in Texas. These generators produce less noise and emissions, making them suitable for urban projects and sensitive environments.
- IoT and Telematics: IoT-enabled generators will become more prevalent in Texas, allowing construction companies to monitor and manage their power sources remotely. This ensures uninterrupted power supply for critical operations.
- Sustainability: In line with the state’s growing interest in sustainable practices, generators that run on biofuels or other environmentally friendly fuels may gain popularity, aligning with the state’s commitment to reduce emissions.
- Rental Market Growth: As the construction rental market continues to grow, Texas businesses will have greater access to generators for temporary power needs. Renting generators can be a cost-effective solution for short-term projects or during peak demand periods.
The North American construction equipment industry is at a pivotal moment, marked by the statistics illustrating the industry’s significance and challenges, and exciting upcoming trends that promise to reshape the landscape. As we’ve explored the trends and their impact on generators for sale in Texas, it’s clear that the industry’s future is marked by innovation, sustainability, and adaptability.
Whether you’re a construction company or an equipment provider like Axiom Equipment, staying informed and agile is key to thriving in this dynamic industry.
Interested in knowing more about how these trends are impacting specific areas of the industry? Let us know your questions and comments by filling out the form below.
Keep an eye on our blog for more insights into these trends and how they’re shaping the future of our industry, and contact us if you have any questions or comments!