Despite being synonymous with visual clarity, the year 2020 approaches with a somewhat blurry outlook for construction equipment purchases. Industry observers agree that domestic and global uncertainties will sap momentum from the decade-long construction boom, but effects on the equipment sector are only slowly coming into focus.
Several manufacturers have pared back 2020 forecasts that already hinted at a slowdown. In November, Deere & Co. predicted a 10% to 15% drop in its construction and forestry sales in its coming fiscal year, while announcements from both Terex and Caterpillar anticipate fourth-quarter 2019 decreases of as much as 10%. Expectations of diminishing demand for equipment also have begun to translate into layoffs, with both Deere and Caterpillar announcing plans to trim production staffs at several domestic manufacturing plants.