Surpassing even the most optimistic expectations of industry observers, sales of construction equipment are on pace to record double-digit growth for 2018, providing welcome momentum in the face of looming uncertainties about the market’s long-term prospects.
With demand for new equipment already benefitting from an overall strong economy, the federal tax law’s provision of 100% first-year bonus depreciation for new assets “threw gas on the fire,” observes Steve Tam, vice president of ACT Research. He predicts 2018 truck sales will finish around 68,000 units, a 13% increase from 2017 and double his original forecast made last December. Tam adds that while equipment demand may be at or near its peak, contractors see opportunities continuing into 2019, at least for now. “They’re confident,” he says, “and confident consumers spend money.”