HEAVY EQUIPMENT MANUFACTURING


infl uence these markets. Continued technological innovation improves existing equipment, in turn driving prices up. How- ever, import penetration slows those increases in equipment prices, providing some relief to buyers. The appreciation of the US dollar has made imports of agricultural and mining equipment more affordable, thus fueling price-based com- petition. As such, market research fi rm IBISWorld estimates imports of agricultural machinery have been increasing at an annualized rate of 4.6% in the three years to 2015. These mixed trends are projected to continue through 2018 as the crop farming and mining sectors rebound.


Cogs_AllProducts_ME_bw_2015_Layout 1 12/17/14 11:10 AM Page 1


A Collapse in Mining In the three years to 2015, the mining sector has col- lapsed due to tepid demand. China, in particular, has a strong bearing on the health of global mining because it is the largest consumer of iron ore, copper and coal. In the second quarter of 2015, the GDP of mainland China has grown at its slowest rate since 1990, which has contributed


Prices of major crops have dropped or stayed stagnant.


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4 5 COGSDILL TOOL PRODUCTS, INC. ©2015 84 AdvancedManufacturing.org | October 2015


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