North American Annual Review April 2023

MARKET REPORT
The construction equipment industry in

NORTH AMERICA
APRIL 2023 | ISSUE 4
NORTH AMERICAN SERVICE

North American annual review | April 2023
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ANNUAL REVIEW
The construction equipment industry in
N ORT H A ME R I CA
April 2023 | Issue 4
CONTENTS
A review of 2022 and a forecast to 2027 4
Review of 2022 4
Forecast to 2027 5
Economic and construction activity 10
The economy 10
Construction 11
Mining & quarrying 15
Agriculture 17
Equipment analyses 19
Articulated dump trucks 19

Asphalt pavers 19
Backhoe loaders 19
Compact tracked loaders 20
Crawler dozers 20
Crawler excavators 21
Masted rough terrain lift trucks 21
Mini excavators 21
Motor graders 22
Rigid dump trucks 22
Skid-steer loaders 23
Telescopic handlers 23
Wheeled excavators 23
Wheeled loaders 24
Production 25
International perspectives 28
Sales 28
Production 32
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A REVIEW OF 2022 AND A FORECAST TO 2027

Table 1. North America: Sales of construction equipment, 2018-2022 (Units)
% Change
2018 2019 2020 2021 2022 2021-2022
Articulated dump trucks 3,465 3,775 2,695 3,860 5,500 +42
Asphalt pavers 1,950 1,940 1,955 2,020 2,200 +9
Backhoe loaders 11,220 11,225 8,950 9,475 9,800 +3
Compact tracked loaders 63,853 65,490 74,350 88,650 98,415 +11
Crawler dozers 11,025 11,145 8,275 9,925 10,950 +10
Crawler excavators 31,115 35,200 30,300 33,500 41,320 +23
Crawler loaders 375 425 325 375 380 +1
Masted rough terrain lift 1,725 1,580 1,100 1,750 1,580 -10
trucks
Mini excavators 48,890 50,400 55,145 65,115 65,000 -
Motor graders 3,450 3,450 2,675 2,780 2,725 -2
Rigid dump trucks 538 483 345 410 450 +10
Skid-steer loaders 34,200 28,128 26,460 28,555 29,850 +5
Telescopic handlers 23,775 25,900 14,500 20,500 20,685 +1
Wheeled excavators 790 860 760 935 850 -9
Wheeled loaders < 80 HP 5,600 6,000 5,550 7,550 8,100 +7
Wheeled loaders > 80 HP 19,375 19,475 15,340 19,010 21,050 +11
Total 261,346 265,476 248,725 294,410 318,855 +8
% Annual Change +15 +2 -6 +18 +8
Source: Off-Highway Research
REVIEW OF 2022
The North American construction equipment market grew 8 per cent in 2022,
following on from the 18 percent rise seen in 2021 as demand bounced back from
the pandemic-affected year of 2020. All types of equipment apart from wheeled
excavators and motor graders enjoyed an increase in sales last year, and the market
reached a second successive record high.
Although there were some categories of equipment which saw particularly sharp
percentage rises in sales in 2022 – articulated dump trucks and crawler excavators
stand out – the real driver of volume growth was the compact tracked loader, sales
of which reached unprecedented levels, with close to 100,000 units sold.
This was due to the very high levels of residential building which have been seen
since mid-2020 in response to low interest rates and stimulus spending, a factor
which also drove sales of mini excavators to historically high levels in 2020-2022.
Indeed, the sharp rise in crawler excavator sales in 2022 was also influenced by low
interest rates and the housing boom, with the majority of the sales increase coming
in the smaller 6-12 tonne classes. The same factor had an impact on the crawler dozer
market, where much of the growth last year was in the smaller machine classes.
The buoyancy of the market in 2022 was such that there was even growth in
equipment classes which are in long-term decline, such as backhoe loaders and skid-
steer loaders. Although their gains were modest compared to the average, it
underlines the high demand for machinery in general.
Page 4
A further factor was that even though equipment sales were robust, suppliers and
distributors agree that they could have been higher if there was greater availability
of equipment. Component shortages, and to a lesser extent shipping bottlenecks,
limited the availability of equipment in 2022, and to some extent this pent-up
demand will be carried over into 2023.
FORECAST TO 2027
Table 2. North America: Forecast sales of construction equipment, 2023-2027
(Units)
% Change
2023 2024 2025 2026 2027 2023-2027
Articulated dump trucks 5,515 5,550 4,970 4,200 3,240 -41
Asphalt pavers 2,410 2,520 2,380 1,900 1,850 -23
Backhoe loaders 8,550 7,260 6,890 6,740 6,740 -21
Compact tracked loaders 96,440 86,790 82,440 82,440 86,550 -10
Crawler dozers 11,160 11,160 10,040 8,530 8,680 -22
Crawler loaders 380 380 380 360 340 -11
Masted rough terrain lift 1,810 1,620 1,530 1,530 1,670 -8
trucks
Mini excavators 61,740 57,410 56,250 56,250 59,060 -4
Motor graders 3,120 3,330 3,330 2,490 2,350 -25
Rigid dump trucks 500 440 350 320 360 -28
Skid-steer loaders 26,860 24,970 24,460 23,960 23,480 -13
Telescopic handlers 24,690 25,910 22,010 17,600 19,360 -22
Wheeled loaders < 80 HP 7,690 6,910 6,560 6,560 6,880 -11
Wheeled loaders > 80 HP 21,050 17,880 19,660 20,630 20,630 -2
Total 316,155 291,970 281,790 276,100 287,980 -9
% Annual Change -1 -8 -3 -2 +4
Chart 1. North America: Sales and forecast sales of construction equipment, 2018-
2027 (Units)
350,000
300,000
250,000
200,000
150,000
100,000
50,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Sales Forecast
Page 5
The general outlook for the North American market is that sales will slow over the
next four years, before resuming growth in 2027. Higher interest rates and
inflationary pressures are starting to slow demand, particularly for the smaller
equipment types which are driven by residential construction. However, the backlog
of orders from 2021 and 2022 will continue to have an influence this year,
maintaining sales at levels close to those seen in 2022.
The downturn is forecast to be more pronounced in 2024, with an 8 per cent decline
in sales, as by this point the order backlogs are expected to be worked-out and lead
times should have returned to a more normal level.
Although higher interest rates have the potential to significant slow house building
and therefore compact equipment sales, some of this decline is expected to be offset
by larger equipment types, which will come to the fore as infrastructure construction
picks up pace. Some of this will stem from the 2021 American Rescue Plan Act and
the provisions of the Invest in Canada initiative. While Off-Highway Research
believes both policies will support infrastructure investment and sales of larger
equipment, the extra funds allocated to projects over the long timeframes of civil
engineering schemes will not be sufficient to drive a spike in sales. Rather, they will
give equipment buyers the confidence to invest in fleet renewal.
CANADA
Table 3. Canada: Sales and forecast sales of construction equipment, 2022-2027
(units)
% Change
2022 2023 2024 2025 2026 2027 2023-2027
Articulated dump trucks 500 510 450 380 300 280 -45
Asphalt pavers 220 240 250 230 180 170 -29
Backhoe loaders 950 850 720 680 660 660 -22
Compact tracked 13,950 13,670 12,300 11,680 11,680 12,260 -10
loaders
Crawler dozers 875 890 890 800 680 680 -24
Crawler excavators 5,200 5,460 4,910 5,000 5,250 5,770 +6
Crawler loaders 30 30 30 30 20 10 -67
Masted rough terrain lift 270 310 270 250 250 270 -13
trucks
Mini excavators 6,500 6,170 5,730 5,610 5,610 5,890 -5
Motor graders 475 540 570 570 420 390 -28
Rigid dump trucks 45 50 40 30 20 20 -60
Skid-steer loaders 4,350 3,910 3,630 3,550 3,470 3,400 -13
Telescopic handlers 2,570 2,960 3,100 2,630 2,100 2,310 -22
Wheeled excavators 200 200 190 170 180 180 -10
Wheeled loaders < 80 HP 1,600 1,520 1,360 1,290 1,290 1,350 -11
Wheeled loaders > 80 HP 3,300 3,300 2,800 3,080 3,230 3,230 -2
Total 41,035 40,610 37,240 35,980 35,340 36,870 -9
% Annual change N/A -1 -8 -3 -2 +4
Canadian construction equipment sales hit a record high of 41,305 units in 2022,
driven particularly by housebuilding along with a market that was conducive to
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infrastructure investment. Sales in Canada accounted for 13 per cent of the North
American equipment market.
Chart 2. Canada: Sales and forecast sales of construction equipment, 2022-2027

(Units)
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
2022 2023 2024 2025 2026 2027
Sales Forecast
Sales in 2023 are expected to be only 1 per cent lower than those seen last year, as
manufacturers continue to fulfil their order backlogs. However, demand is expected
to soften towards the end of 2023 as these are cleared and the environment of higher
inflation and interest rates impacts on both demand from residential construction
and the overall affordability (including higher financing costs) of construction
equipment.
The downturn in smaller equipment from 2023-2026 is expected to be offset to some

extent by sales of larger equipment, loader and the outlook for motor graders and
crawler dozers, for example, is positive for the next few years. The crawler excavator
segment also looks particularly strong. However, these machine types are low
volume by nature, and their increases will not be enough to offset the overall decline
in sales.
Off-Highway Research would characterize the outlook for the next four years as a
soft landing for the Canadian equipment market. Year-on-year declines in sales from
2023-2026 will only be single-digit percentage falls and having risen to a record level
in the last two years, the Canadian market will remain at a historically high level.
As in the USA, there are some equipment types such as backhoe loaders and skid-
steer loaders which are in long-term decline, although the skid-steer loader retains
greater relative popularity north of the border than it does in the USA.
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Market conditions are expected to improve towards the end of the forecast period,
with house building expected to accelerate again and start to stimulate sales of
compact equipment. In addition to this fundamental driver, 2027 will start to see the
need to replace the large number of mini excavators and compact tracked loaders
which were bought in the recent boom of 2020-2022.
USA
Table 4. USA: Sales and forecast sales of construction equipment, 2022-2027 (units)
% Change
2022 2023 2024 2025 2026 2027 2023-2027
Articulated dump trucks 5,000 5,005 5,100 4,590 3,900 2,960 -41
Asphalt pavers 1,980 2,170 2,270 2,150 1,720 1,680 -23
Backhoe loaders 8,850 7,700 6,540 6,210 6,080 6,080 -21
Compact tracked 84,465 82,770 74,490 70,760 70,760 74,290 -10
loaders
Crawler dozers 10,075 10,270 10,270 9,240 7,850 8,000 -22
Crawler excavators 36,120 37,920 34,120 34,800 36,540 40,190 +6
Crawler loaders 350 350 350 350 340 330 -6
Masted rough terrain lift 1,310 1,500 1,350 1,280 1,280 1,400 -7
trucks
Mini excavators 58,500 55,570 51,680 50,640 50,640 53,170 -4
Motor graders 2,250 2,580 2,760 2,760 2,070 1,960 -24
Rigid dump trucks 405 450 400 320 300 340 -24
Skid-steer loaders 25,500 22,950 21,340 20,910 20,490 20,080 -13
Telescopic handlers 18,115 21,730 22,810 19,380 15,500 17,050 -22
Wheeled excavators 650 660 620 570 620 650 -2
Wheeled loaders < 80 HP 6,500 6,170 5,550 5,270 5,270 5,530 -10
Wheeled loaders > 80 HP 17,750 17,750 15,080 16,580 17,400 17,400 -2
Total 277,820 275,545 254,730 245,810 240,760 251,110 -9
% Annual change N/A -1 -8 -4 -2 +4
Chart 3. USA: Sales and forecast sales of construction equipment, 2022-2027 (units)
300,000
250,000
200,000
150,000
100,000
50,000
0
2022 2023 2024 2025 2026 2027
Sales Forecast
Page 8
The outlook for the USA is driven by similar factors to Canada. This year has started
well with suppliers still working hard to fulfil orders taken in 2022 and reduce their
backlogs. Although there is evidence from manufacturers that new order intake is
now slowing, this is not a cause for concern at present, but more of a return to more
normal levels of business. This should help reduce lead times to more acceptable
levels as the year progresses.
Having said that, many manufacturers reported at this year’s ConExpo-Con/Agg

exhibition that they were sold out into 2024 for various types of equipment. While
this implies that lead times are still longer than many would like, it means that retail
sales are likely to remain buoyant for much of the year. Some softening is expected
in the final quarter of 2023, particularly for compact equipment.
The market is expected to pivot more towards infrastructure work in the coming
years as higher interest rates slow down house building and funds from the almost
US$2 trillion American Rescue Plan start to be spent on construction work. While
this will provide some stability for larger types of equipment, the market has risen
to such a high in recent years, that sales of almost all machinery will come down
from the levels seen in 2022 and those expected this year.
Among the less affected will be the more multi-purpose equipment types such as
wheeled loaders over 80 horsepower, which will only fall 2 percent over the forecast
period, and crawler excavators, which should see some growth.
Off-Highway Research would not necessarily frame this as a market downturn, but
more as a soft landing from the abnormally high sales which have been achieved in
the last 2-3 years.
One of the features of the boom of recent years is that sales of heavy types of
equipment have risen sharply, despite the emphasis being on housebuilding.
Unfortunately for new equipment sales over the coming years, machine types such
as dozers, graders and articulated dump trucks are so long-lived, that the fleet which
has been built-up is believed to be adequate for the workload ahead. This is the key
reason why, even though infrastructure remains a solid and growing end market,
sales of these machine types are not expected to see any significant up-lift.
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ECONOMIC AND CONSTRUCTION ACTIVITY

THE ECONOMY
Table 5. Canada: Key economic indicators, 2017-2023*
2017 2018 2019 2020 2021 2022* 2023*
GDP (annual % change) 3.0 2.8 1.9 -5.2 4.5 3.3 1.5
GDP per capita (US Dollars) 45,192 46,626 46,404 43,307 52,015 56,794 59,179
Total investment (% of GDP_ 23.6 23.4 23.1 22.3 23.7 23.3 23.0
Consumer price inflation 1.6 2.3 1.9 0.7 3.4 6.9 4.2
(annual % change)
Unemployment (% of labor force) 6.4 5.9 5.8 9.6 7.4 5.3 5.9
Employment (millions of people) 18 19 19 18 19 20 20
Population (millions of people 36 37 38 38 38 39 39
Government net debt (% of GDP) 25.8 25.7 23.1 33.6 31.6 30.5 30.3
* Forecast
Source: International Monetary Fund (IMF)
The defining factor in the global economy over the last three years has been the
Covid pandemic and its aftermath. The lockdowns seen around the world in 2020
caused more severe falls in GDP than were seen in 2009 in the aftermath of the credit
crisis, which were themselves the first economic contractions experienced since the
Second World War.
But unlike the financial crisis of the late 2000s, economic growth sprang back sharply
in 2021 and 2022. Having learnt their lesson from the financial crisis, which was
followed by years of lackluster economic growth, policy makers stimulated their
economies with ultra-low interest rates, payroll support and job protection measures
when the pandemic struck, helping to ensure the strong rebound.
Table 6. USA: Key economic indicators, 2017-2023*

2017 2018 2019 2020 2021 2022* 2023*
GDP (annual % change) 2.3 2.9 2.3 -3.4 5.7 1.6 1.0
GDP per capita (US Dollars) 59,886 62,770 65,052 63,078 69,227 75,180 78,422
Total investment (% of GDP) 20.8 21.1 21.4 21.2 21.4 22.0 21.8
Consumer price inflation 2.1 2.4 1.8 1.2 4.7 8.1 3.5
(annual % change)
Unemployment (% of labor force) 4.4 3.9 3.7 8.1 5.4 3.7 4.6
Employment (millions of people) 153 156 158 148 153 158 158
Population (millions of people) 325 327 329 331 332 333 334
Government net debt (% of GDP) 80.3 81.2 83.0 99.1 99.6 94.7 96.9
* - Forecast
Source: International Monetary Fund (IMF)
However, by late 2021, as the pandemic receded following mass vaccinations, it

started to become clear that the economy had been over-stimulated, as reflected by
soaring inflation. This was caused by a combination of a scarcity of commodities and
manufactured goods due to production, which was shut down when the pandemic
first hit, and which had failed to keep up with demand ever since.
This was compounded by a lack of shipping and transportation capacity, the

lifeblood of the globalized economy, which exacerbated delays in deliveries of
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components, intermediate goods and finished products to where they were needed.
Again, this grew out of closures and illness during lockdowns, and the sector’s
inability to ramp back up to the very high levels of post-pandemic demand which
were seen.
The aftermath of the pandemic was therefore characterized by scarcity and

inflationary pressures, the like of which had not been seen since the early 1980s. The
lack of response when these pressures started to appear in late 2021, and the belief
that they were ‘transitory’ meant that by the time central banks started to raise
interest rates, they had to increase them more steeply and by greater amounts than
they otherwise would have done. This increased the threat of a slowdown, if not a
full-blown recession, in 2022-2023.
Inflationary pressures were exacerbated from early 2022 onwards following Russia’s
invasion of the remaining parts of Ukraine not under its control following the 2014
annexation of Crimea. The response to this from Western powers was a broad
package of sanctions preventing the sale of Russian oil, gas, and other commodities,
which further increased inflationary pressures.
Although unemployment rose during 2020 in both Canada and USA, it fell to low
levels in 2021 as businesses were again able to open up and start hiring. The high
employment rate in 2022 in particular was to some extent a contributor to
inflationary pressure. With a portion of the population retiring during the pandemic
years and leaving the workforce, skills shortages became acute in 2021 in 2022. This
was particularly acute in areas such as manufacturing and construction, which have
long been vulnerable due to their ageing workforces and inability to attract sufficient
young people to their industries. This led to something of an inflationary wage
spiral.
A slowdown in GDP is expected in 2023, as interest rates bite and start to bring
inflation under control, which is also expected to cause a modest rise in
unemployment.
CONSTRUCTION
USA
Table 7. USA: Non-seasonally adjusted value of construction put in place (US$
billion and annual percentage change)
2018 2019 2020 2021 2022
US$ % US$ % US$ % US$ % US$ %
Non-residential 748 +5 785 +5 812 +3 805 -1 880 +9
- Building 426 +4 444 +4 447 + 446 - 504 +13
- Infrastructure 323 +7 341 +6 366 +7 359 -2 372 +3
Residential 546 +4 522 -4 615 +18 784 +28 910 +16
Grand total 1,295 +5 1,308 +1 1,427 +9 1,589 +11 1,789 +13
Source: Census Bureau
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Construction in the US was showing modest growth in the two years running up to
the pandemic. The value of construction put in place stood at US$1.26 trillion in 2018,
up 5 per cent on the previous year. However, there was only a 1 per cent increase in
2019, due to a downturn in residential activity.
Although lockdowns initially slowed construction activity when they came into
force in 2022, residential building has rocketed since the summer of 2020. Stimulus
spending and low interest rates encouraged many people to move to bigger
properties or extend their houses to create a home office space. This drove a period
of remarkable growth in residential construction from 2020 to 2022, which saw the
value of the industry almost double in the USA.
Table 8. USA: Number and value of residential building permits issued (thousands
of permits issued and value in US$ billions))
2018 2019 2020 2021 2022*
Number of permits (thousands) 1,329 1,386 1,471 1,737 1,652
% change +3.7 +4.3 +6.1 +18.1 -5.1
Value of permits (US$ billion) 271 281 307 380 374
% change +4.9 +3.5 +9.5 +23.7 -1.6
* - provisional
Source: Census Bureau
As interest rates started to rise in 2022 in response to the high inflation that was
building in the economy, the number of housing permits issued started to level-off.
Provisional data for 2022 showed that the number of permits issued that year were
down 5.1 per cent on 2021, although this still kept the number significantly higher
than had been seen in 2018-2020. The value of permits issued in 2022 was only down
1.6 per cent on the previous year. This discrepancy was largely due to higher
construction costs due to rising labor and materials prices.
Although the new climate of higher interest rates is likely to cool the housing market
going forward, it is widely accepted that the USA has a shortage of housing,
particularly affordable housing. This is partly a result of the collapse in house
building from the mid-2000s to the mid-2010s which followed the sub-prime crisis.
The housing shortage is put at between 3-6 million homes, depending on the source
of the study.
This means that while 2022 is likely to be a high-water mark for the industry in this
cycle, high demand for housing should keep the segment in reasonable health in the
medium term.
In contrast to the residential segment, non-residential building and infrastructure

construction have been subdued in the US during the Covid era. Understandably,
the pandemic caused a downturn in office and residential construction, as vacations
were put on hold and white-collar staff worked from home. However, there was
Page 12
growth in the commercial construction segment, and in 2022 there was a particular
surge in manufacturing construction which offset the declines elsewhere.
While there is some credence to the argument that office construction may face a
medium to long-term challenge, in the face of working from home becoming
ingrained for many. On the upside, construction of manufacturing facilities saw a
sharp up-lift in 2022 as many companies on-shored production in response to supply
chain issues and shipping delays in their global networks. This too could be a
significant medium-term trend.
The infrastructure segment, which is dominated by transportation and power (Off-

Highway Research accepts that power construction could also be classified as
building, rather than infrastructure) has essentially been flat over the Covid years.
There was an expectation that there would be some uplift from the Infrastructure
Investment and Jobs Act from 2023 onwards as projects in the 2021 legislation would
start to get underway. However, there had not been any obvious uplift at the time
of writing.
Table 9. USA: Construction industry employment statistics, 2018-2022*

2018 2019 2020 2021 2022*
Average annual employment (millions of people) 7.3 7.5 7.3 7.4 7.7
Change in average annual employment (%) +4.6 +2.8 -3.2 +2.2 +3.4
Average monthly job openings (thousand) 274 319 256 334 391
Average monthly hires (thousand) 378 416 415 363 357
Average monthly unemployment (%) 5.1 4.5 8.7 6.5 4.6
* Off-Highway Research estimate
Source: Bureau of Labor Statistics
A final point on the US construction segment is the shortage of workers.

Construction was reasonably buoyant prior to the pandemic, and this had taken
employment in the industry to 7.5 million workers – almost as high as in the
previous peak in 2005-2006 when industry employment wavered around 7.5-7.6
million people. By the end of 2022 employment in the industry had moved passed
this with a run rate for the year of around 7.7 million people employed in the
industry, and several months seeing the figure top 7.8 million workers.
Other employment data for the US construction industry also point to a tight labor
market. The average number of job openings in the industry has never been higher
than it was in 2021 and 2022. The previous industry peak in 2007 saw an average of
180 job openings per month – less than half what was seen in 2022. Tellingly in 2022,
the average number of people the industry was able to hire per month was less than
the number of openings. This has never been the case before in the US construction
industry, going back to the limits of the BLS data which started in 2000.
Likewise, the unemployment rate in the industry has never been lower than it was
in 2019 (4.5 percent), a figure which was almost equaled in 2022 at 4.6 per cent. For
Page 13
comparison, the lowest the industry employment rate reached in the last boom was
6.7 per cent in 2006.
This data underlines not only how buoyant the US construction industry has been
during and following the pandemic, but also how the shortage of labor is both
driving wage inflation and likely limiting the construction output which can be
achieved.
CANADA
Table 10. Canada: Value of building (CA$ billion and annual percentage change)
2018 2019 2020 2021 2022*
CA$ % CA$ % CA$ % CA$ % CA$ %
Total non-residential 55 +8 58 +6 57 -1 56 -1 64 +14
Total residential 121 +5 121 - 128 +6 165 +28 184 +12
Total building 176 +6 179 +2 186 +4 221 +19 248 +12
Source: Statistics Canada
The Canadian construction market in the pandemic years followed a similar pattern
to the US, with residential construction starting to grow in mid-2020 in response to
low interest rates and stay-at-home lifestyles. The non-residential building market,
which includes offices and residential construction fell slightly that year for the same
reasons.
Table 11. Canada: Value of building permits issued (CA$ billion and annual
percentage change)
2018 2019 2020 2021 2022*
CA$ % CA$ % CA$ % CA$ % CA$ %
Total non-residential 37 +4 41 +10 34 -17 40 +18 47 +18
Total residential 63 +5 62 -1 67 +8 87 +30 92 +5
Total building permits 100 +5 103 +3 101 -2 127 +26 139 +9
Residential construction accelerated strongly in 2021 and enjoyed a robust increase

in 2022. While the growth in house building in Canada matched that of the US in
2021, the rate of growth in 2022 was somewhat lower than its neighbor in 2022,
although the rate of 12 per cent growth which was achieved was still a strong result.
Another important point is that the number of housing permits being issued in
Canada did not slow as markedly as in the US in 2022. This provides some basis to
believe that the boom in residential construction will be a little more prolonged in
Canada than in the US.
Non-residential construction in Canada has matched the dynamic seen in the US,
with a flat market in 2020 and 2021, accelerating to strong growth in 2022 as the
pandemic began to pass.
Page 14
Table 12. Canada. Investment in infrastructure, excluding buildings and machinery

(CA$ billion and annual percentage change)
2017 2018 2019 2020 2021
CA$ % CA$ % CA$ % CA$ % CA$ %
Total infrastructure 59.6 +4 59.9 - 60.2 +1 60.0 - 66.5 +11
However, the infrastructure market in Canada weathered the pandemic slightly

better than the US did, with no falls in activity during the Covid years. What is more,
it came back strongly in 2021. This represented a much quicker recovery than was
seen in the US infrastructure market, which is essentially waiting in hope that 2023
will deliver better growth.
MINING & QUARRYING
USA
Table 13. USA: Number of mining and quarrying sites, 2012-2021
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Coal
Underground 563 491 443 404 448 417 390 369 343 309
Surface 903 833 813 717 872 812 784 739 645 592
Total 1,466 1,324 1,256 1,121 1,320 1,229 1,174 1,108 988 901
Metal
Underground 117 108 96 91 87 86 87 91 95 88
Surface 160 158 155 149 175 166 163 155 142 145
Total 277 266 251 240 262 252 250 246 237 233
Non-metal
Underground 41 43 44 44 44 40 40 40 41 40
Surface 427 421 660 675 739 743 727 736 719 686
Total 468 464 704 719 783 783 767 776 760 726
Stone
Underground 111 112 116 115 116 115 114 112 110 110
Surface 4,092 4,040 3,981 3,943 4,144 4,209 4,225 4,229 4,138 4,155
Total 4,203 4,152 4,097 4,058 4,260 4,324 4,339 4,341 4,248 4,265
Sand & gravel
Underground - - 1 - - - - - - -
Surface 6,690 6,581 6,280 6,199 6,626 6,636 6,662 6,691 6,541 6,577
Total 6,690 6,581 6,281 6,199 6,626 6,636 6,662 6,691 6,541 6,577
Total - all types
Underground 832 754 700 654 695 658 631 612 589 547
Surface 12,272 12,033 11,889 11,683 12,556 12,566 12,561 12,550 12,185 12,155
Grand total 13,104 12,787 12,589 12,337 13,251 13,224 13,192 13,162 12,774 12,702
Source: National Mining Association
Data from the National Mining Association shows that the number of active mines
and quarries in the US has fluctuated over the last decade. It has been as high as
13,224 sites in 2017 and as low as 12,337 sites just two years earlier.
Although in coal and metal mining there has been a clear decline in the number of
sites over the last decade, non-metal mining has seen a surge in the number of
operations. The decline in coal and metals mining has driven the decline in
Page 15
underground activities. In 2012 underground extraction represented 6 per cent of all

active sites, compared to 4 per cent in 2021.
However, it is quarrying which dominates, with some 4,265 stone sites and 6,577
sand and gravel sites active in 2021, 10,842 in total or 85 per cent of all sites. There is
a less clear trend in the number of quarry operations, with both the number of stone
and sand and gravel sites reaching a peak in the late 2010s.
Although this rise would appear to follow the trend in construction activities
throughout that decade, the relationship seems to have broken down in recent years,
with both sand and gravel and stone declining in 2020 and 2021. However, it may
also be the case that the industry has consolidated into fewer, larger sites.
CANADA
Canadian government statistics state that the country has more than 200 active
mines and some 6,500 sand, gravel, and stone quarries.
Canada is the leading global producer of potash and is ranked among the top five
producers of aluminum, cobalt, diamonds, fluorspar, gemstones, gold, indium,
niobium, palladium, platinum, tellurium, titanium concentrate and uranium. Total
mineral production was valued by the government at CA$55.5 billion in 2021 and
its data shows the sector has enjoyed an almost continuous upswing since the mid-
2010s.
Table 14. Canada: Mineral production by commodity group, 2012–2021

(CA$ millions)
Commodity 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 *
Metals 23,558 23,497 24,225 23,198 23,302 25,738 27,059 29,496 31,635 35,657
Non-metals 16,471 15,477 15,779 16,520 13,724 13,304 15,531 12,943 10,777 11,884
Coal 5,881 4,887 3,897 3,126 4,009 6,281 6,459 5,625 3,957 7,965
Total 45,911 43,861 43,900 42,843 41,036 45,323 49,049 48,065 46,369 55,506
*Provisional
Source: Government statistics
In terms of value generated by Canada’s extraction industries, the government

breaks down the 2021 CA$55.5 billion total as detailed in the table below.
By far the highest value segment is gold, while other high value metals include iron,
copper, and nickel. The non-metal segment is dominated by potash, a plant fertilizer,
while coal, a mineral class on its own, accounted for 14 per cent of output by value
in 2021.
Although the great majority of extraction sites in Canada are stone, sand and gravel
facilities, the value of these sectors was low down the league table with a combined
total of CA$3.33 billion or 6 per cent of the total.
Page 16
Table 15. Canada: Value of extracted products, 2021.

Product % Of total value Approximate value (CA$ million)
Gold 25 13,875
Coal 14 7,770
Iron ore concentrates 12 6,660
Potash 9 4,995
Copper 8 4,440
Nickel 5 2,775
Sand & gravel 4 2,220
Platinum group metals 3 1,665
Diamonds 3 1,665
Stone 2 1,110
Others 15 8,325
Total 100 55,500
Source: Government statistics
AGRICULTURE
USA
According to the US Department of Agriculture (USDA), agriculture, food, and
related industries contributed roughly US$1.26 trillion to US gross domestic product
(GDP) in 2021, a 5.4 percent share. That year, a total of 21.1 million full and part-time
jobs were related to the agriculture and food segments, about 10.5 per cent of the
national total.
Table 16. USA: Key data on farming, 2017-2021

2017 2018 2019 2020 2021
Number of farms (millions) 2.04 2.03 2.02 2.02 2.01
Land area in farms (millions of acres) 900 900 897 897 895
Average farm size (acres) 441 443 444 444 445
Source: US Department of Agriculture (USDA)
The total land given over to agriculture in the US is put at 44 per cent (2018 estimate,
CIA World Factbook). A further 17 per cent is arable land. The general dynamic of
agriculture in the US is of a slowly diminishing number of farms. While the land
area of farms has also fallen over the last five years, it has been at a slower rate. This
implies consolidation in the agricultural sector, with fewer, larger farms making up
the agricultural landscape.
Although the land area of the US given over to agriculture is slowly falling, the
country is a net exporter of food. Activity is focused on the central great plains,
where cereal crops dominate, particularly corn, soybean, and wheat. Cotton, rice,
barley, and tobacco are more common in the southern states, while fruits and
vegetables tend to be grown on both coasts. Livestock farming focuses on cattle, pigs,
and poultry.
The seasonal nature of farming means employment in the sector ebbs and flows each
year.
Page 17
Table 17. USA: Quarterly number of hired workers (‘000) and average wage (US$
per hour)
2021 2022
Q! Q2 Q3 Q4 Q1 Q2 Q3 Q4
Hired workers (thousand) 506 613 797 772 507 630 797 785
Hours per week worked per worker 40.2 40.9 41.0 42.0 39.3 39.7 41.1 41.8
Average wage (US$/hour) 16.21 15.97 16.59 16.59 17.63 17.22 17.63 17.72
Source: US Department of Agriculture (USDA) Farm Labor report
USDA data shows that hiring by farms was slightly higher in the one-week census
periods it uses in Q2 and Q4 2022, compared to the same periods in 2021. The
number of hours worked by each worker were comparable for the second half of
2022 compared to 2001, but most strikingly, wages showed a sharp upward trend in
2022.
CANADA
According to the 2021 Canadian agricultural census, the country has 189,874 farms,
262,455 farm operators and 242,052 paid employees. The total land given over to
agriculture in the Canada is put at 45 per cent (2018 estimate, CIA World Factbook).
A further 17 per cent is arable land.
Oilseed and grain make up the largest proportion of farms in Canada with 65,135
oilseed and grain farms, accounting for 34.3% of total farms. Besides the high-
volume crops, Canada is also a significant producer of peas, lentils, oats, wheat,
barley soyabean, corn and potatoes. The landscape for livestock is similar to the US,
with cattle, pigs and poultry dominating. As in the US, farm consolidation is a clear
trend, particularly among smaller farms.
Canada’s varied climate means different crops and livestock dominate in different
regions. The hub for the high-volume crops is Western Canada. Atlantic Canada is
significant for lowbush blueberry and potato farming, while livestock is more
associated with Ontario and Quebec.
Page 18
EQUIPMENT ANALYSES
ARTICULATED DUMP TRUCKS
Articulated dump trucks were one of the equipment types where was worst affected
by the fall in production during the pandemic and the difficulties faced in ramping
up production and securing components in 2021 and 2022. As a result, there was
huge pent-up demand for these machines in 2020 and 2021, which led to an
extraordinarily high sales level of 5,500 units in 2022.
The problems of machine availability were exacerbated in North America due to the
fact that relatively few of the machines sold in the region are manufactured there.
The only indigenous manufacturer is John Deere. Bell, Caterpillar,
Develon/Hyundai and Volvo/Rokbak all rely on European production to serve this
market, while Komatsu’s trucks are largely manufactured in Japan. However, as a
sidenote, Komatsu re-established manufacturing one of its models in Chattanooga,
TN towards the end of 2022 in response to the high demand.
Long lead times are still a factor, and the high levels of construction activity in North
America mean articulated dump trucks are still very much in demand. Off-Highway
Research therefore expects that sales of these machines will be sustained at elevated
levels in both 2023 and 2024. The more marked slow-down forecast for 2025 onwards
is characterized as a return to more normal levels of demand.
ASPHALT PAVERS
The asphalt paver market has grown modestly over the last five years, with much of
the demand being for smaller classes of machine to support residential
development. However, the more pronounced rise in 2022 included a greater
proportion of highway-class machines, purchased in response to the up-tick in
infrastructure work which was seen last year, and which is expected to endure over
the medium-term.
This is expected to maintain sales at an elevated level through to 2025, after which a
slowdown to more natural sales levels is anticipated.
BACKHOE LOADERS
Although backhoe loaders saw a small up-tick in sales in 2022, it is a product in long-
term decline. Current volumes are a far cry from the 25,000-30,000 machines per year
which were sold in the late 1990s and early 2000s. Compact excavators, compact
tracked loaders, and, to a lesser extent, small wheeled loaders have gained in
popularity at the backhoe’s expense.
The continuing rise of other equipment types will put backhoe loader sales under
further pressure in the years to come. The decline in sales is expected to outpace that
Page 19
of the overall market, reducing annual volumes to around the 7,000 machines per
year market by 2027.
Having said that, North America remains one of the most important markets for this
equipment type, accounting for more than 10 per cent of global demand.
COMPACT TRACKED LOADERS

Compact tracked loaders have been the great success story of the North American
equipment market over the last two decades. Having been widely introduced by the
major OEMs in the early 2000s, sales of this machine type surpassed those of the
wheeled equivalent, skid-steer loaders, in the mid-2010s, and are now by far the
highest volume machine in the market. Despite being more expensive than the
wheeled alternative, the advantages in tractive force, lower ground pressure and
operator comfort of a tracked undercarriage saw sales rise to almost 100,000
machines last year.
The extraordinary boom of the last three years was driven by the huge surge in
activity which was seen in residential construction. Now that the housing market is
cooling, sales of compact tracked loaders are also forecast to become more subdued.
However, housing is not the only driver for machine sales. They have gained
popularity in landscaping and agriculture, among other segments, and have proved
a useful solution at a time when labor has been in short supply and these disciplines
have been forced to adopt a more mechanized approach. Sales are therefore expected
to remain at relatively high levels and will be supported by increased machine
availability thanks to the onshoring of production by two major suppliers, Kubota
and Takeuchi.
CRAWLER DOZERS
The 10 per cent growth in crawler dozer sales last year was about in line with that
of the general market, as was the 20 per cent rise in 2021. However, at 25 per cent,
the downturn in sales in 2020 due to the pandemic was one of the most severe seen
for any equipment type. As a result, dozer sales remain below the pre-pandemic
levels seen in 2018 and 2019.
With infrastructure construction now coming to the fore, those levels of the late
2010s are expected to be seen again in 2023 and 2024. However, sales are forecast to
wane again in 2025 and the downturn will be more pronounced in 2025 and 2026.
Page 20
CRAWLER EXCAVATORS
The last two years have seen the lighter end of the crawler excavator market benefit
from the boom in residential building, while heavier equipment types are now
benefiting from the upswing in infrastructure work.
The residential boom created a huge increase in sales of 6-12 tonne excavators. Last
year that size class represented just over a third of crawler excavator sales in North
America, although it should be noted that their relative popularity is much higher
in the USA than in Canada, which still tends towards heavier excavators,
particularly around the 30 tonne class.
Over the next five years, crawler excavators are the only equipment type which is
expected to see growth, as emphasis moves towards heavier classes of equipment
for civil engineering applications.
There is also an element that the now popular 6-12 tonne sizes will continue to
replace backhoe loaders, as will some of the larger classes of mini excavator.
MASTED ROUGH TERRAIN LIFT TRUCKS

Although largely now replaced by telescopic handlers, modest demand remains in
North America for masted rough terrain lift trucks. Apart from 2020 it has been a
fairly steady market of 1,500-1,900 units per year in recent years and Off-Highway
Research’s forecast is for this volume to continue. The applications and customer
groups for this type of equipment are niches, but they are stable and well-
established, encompassing areas such as builders’ merchants and other building
materials handling/stock management tasks.
MINI EXCAVATORS
In addition to compact tracked loaders, the mini excavator segment has seen a
remarkable increase in demand since the start of the pandemic as residential
building has boomed. At around 65,000 units sold in both 2021 and 2022, the market
has never been higher.
This has come on the back of the long-term growth in mini excavator sales which
has been seen over the last two decades and particularly in the 2010s, as these
machines have gained acceptance and to some extent replaced the backhoe loader.
There has also been a very similar trend in Europe over the last 10-15 years.
But whereas in Europe the market is focused on smaller machines of 2.5 tonnes or
less, which relates to the maximum gross vehicle weight allowed on a standard
driving license, demand in North America only really begins at 2 tonnes. Machines
Page 21
from 2-6 tonnes (the upper cut-off of Off-Highway Research’s mini excavator
classification) account for around 85 per cent of sales.
This preference for relatively big mini excavators is one of the key reasons why the
segment is forecast to remain strong over the next five years. These machines are
large enough to have applications in infrastructure construction as well as smaller
scale residential work.
MOTOR GRADERS
The striking feature of the motor grader market over the last two years is that it has
not bounced back. Sales dipped in 2020 as the pandemic struck, and while every
other equipment type saw a rebound in 2021 and 2022, grader sales for the last two
years have remained at a low level.
A rebound in sales is long overdue, and Off-Highway Research believes that the next
three years will see annual grader sales comfortably above 3,000 units, with a decline
thereafter.
One of the difficulties in forecasting motor grader sales is that they are incredibly
long-lived machines, so even with infrastructure work trending upwards, the
increase in grader sales may be relatively modest given that there is a large
population available in the marketplace. By the same token, there was a peak in
grader sales in the early 2010s, and it may be that with a promising pipeline of work
ahead , contractors and rental companies might take the opportunity to replace these
aging machines.
While this might point to a potential upside in the market over the next few years, a
more significant point is that the long-term trend for motor grader sales in North
America is downward. So, while Off-Highway Research acknowledges its forecast
for 2026 and 2027 in particular may be a little pessimistic, it also does not believe
that there is any possibility of a sharp improvement in sales that would take the
market over 3,500 units per year in the foreseeable future.
RIGID DUMP TRUCKS

The rigid dump truck market has been eroded over the last 20 years by the
development of larger articulated trucks as well as consolidation in the mining and
quarrying segment.
It was also one of the areas which was particularly badly hit in 2020 by components
shortages and shipping bottlenecks. This meant the bounce back in 2021 was a little
underwhelming and the market only returned to proper health in 2022. Further
growth is expected this year before the market starts to cool again in 2024.
Page 22
SKID-STEER LOADERS
Skid-steer loader sales have been in long-term decline since the 2000s, when compact
tracked loaders started to replace them. The trend has been particularly pronounced
since the mid-2010s.
Although sales bounced back after the dip of 2020, it was only a modest rebound,
and Off-Highway Research’s forecast for the next five years is essentially for a
continuation of the product’s long-term decline. This will be hastened by the
expected slow-down in house building this year.
However, it should be stressed that Off-Highway Research is not forecasting the

demise of the skid-steer loader. It is more the case that we believe sales will
eventually bottom out. But what is not clear is what that final natural level for the
market will be.
TELESCOPIC HANDLERS
Telescopic handlers have proved one of the more volatile product types over the
years and have shown themselves to be susceptible to quite large year-on-year
swings.
The recovery from the pandemic has been a little slow due to mixed demand
characteristics. While there has been some demand from housebuilding, telescopic
handlers also rely on non-residential building for their sales, and this has been a
more troubled area. A further complication is that with a reasonable proportion of
the telehandlers sold in North America being imported, the segment has been more
exposed than some to shipping and logistics bottlenecks
With these problems now receding, a more convincing recovery is expected this year
before the market reaches a cyclical high in 2024. A cyclical downturn is forecast for
the next two years, which, due to the segment’s nature, is expected to be more severe
than for most other equipment types.
WHEELED EXCAVATORS
Although it displays a cycle, the wheeled excavator segment is essentially a stable
niche, with sales generally falling between 650-850 units per year for the last two
decades or more.
After the recovery of 2021 to 935 units, which was the highest annual sales have been
since before the global financial crisis, Off-Highway Research expects the segment
to fall back to more natural levels for the foreseeable future.
Page 23
WHEELED LOADERS
Like compact tracked loaders, sales of small wheeled excavators under 80
horsepower have seen remarkable, almost non-stop growth since 2009. Last year’s
volume of 8,100 units represented a market four times the size of what it was in 2008.
The sharpest year-on-year rise in history was seen in 2021, with a more modest
improvement coming last year. Like other compact equipment classes, sales are
expected to moderate for the next 3-4 years as housebuilding undergoes a reset.
This long-term growth has been driven by the replacement of skid-steer loaders,
thanks to a steering system which is less likely to damage the ground along with a
more elevated and generally more comfortable operators’ environment. Off-
Highway Research therefore expects continued long-term growth in compact
wheeled loader sales, as skid-steer loaders continue to decline in popularity.
The dynamic for larger wheeled loaders of 80 horsepower and above has been more
stable over the years, with the market generally oscillating between 15,000-20,000
units per year. Last year’s total of 21,050 units sold was the highest total on record,
and while Off-Highway Research expects that volume to be matched this year, a
downturn seems inevitable thereafter.
However, the wide range of applications for wheeled loaders tends to mean that
downturns in the market tend to be brief. Given this fact and the generally buoyant
situation in infrastructure construction, Off-Highway Research expects historically
strong volumes to persist throughout the forecast period.
Page 24
PRODUCTION
Table 18. North America: Production of construction equipment by type, 2018-
2022 (units)
% Change
2018 2019 2020 2021 2022 2021-2022
Articulated dump trucks 525 565 400 610 860 +41
Asphalt pavers 1,765 1,835 1,845 1,740 1,890 +9
Backhoe loaders 7,620 7,710 5,620 5,750 5,215 -9
Compact tracked loaders 51,450 57,100 62,800 71,210 78,300 +10
Crawler dozers 10,460 10,660 7,850 9,530 10,070 +6
Crawler loaders 170 200 130 190 195 +3
Masted rough terrain lift 1,400 1,300 900 1,500 1,180 -21
trucks
Mini excavators 21,500 23,600 23,560 26,340 19,500 -26
Motor graders 3,100 2,800 2,200 2,320 2,250 -3
Rigid dump trucks 578 553 440 480 560 +17
Skid-steer loaders 36,159 27,750 24,645 30,990 33,135 +7
Telescopic handlers 14,000 15,850 9,390 12,500 12,837 +3
Wheeled loaders < 80 HP 750 640 525 700 410 -41
Wheeled loaders > 80 HP 18,500 18,600 14,530 17,600 19,370 +10
Total 184,952 185,983 167,010 196,995 204,907 +4
% Annual Change +15 +1 -10 +18 +4
Chart 4. North America: Production of construction equipment by type, 2022

(units)
Backhoe loaders Others
Crawler dozers 3% 4%
5%
Telescopic
handlers
6% Compact tracked
loaders
Crawler 38%
excavators
9%
Mini excavators
9%
Wheeled loaders
10% Skid-steer loaders
16%
Equipment production in North America grew 4 per cent last year, driven by the
sharp rise in regional demand for all types of equipment. However, the rate of
increase in production was only half that of the 8 per cent rise in sales. This
imbalance was due to the fact that North America has historically imported large
quantities of the high-volume products.
Page 25
North America is by far the largest market in the world for both compact tracked
and skid steer loaders, accounting for roughly 65 per cent and 95 per cent of demand
for these two equipment types, respectively. It is unsurprising that these two
categories account for over half of regional equipment production in unit terms.
However, up until the end of last year, there were significant imports of compact
tracked loaders from Japan, which has historically meant that the region has been a
net importer of these machines. That is now changing, with the two major importers,
Kubota and Takeuchi, setting up manufacturing in the US and starting production
in late 2022. As this ramps up, the region should become self-sufficient in compact
tracked loader production.
With demand for skid-steer loaders outside North America running at around
10,000-15,000 machines per year and North American annual sales currently just
below the 30,000 units per year, the region is a net export of this machine type and
accounts for roughly 75 per cent of global production. Despite skid-steer loaders
being in a slow long-term decline in North America as compact tracked loaders
continue to replace them, the region is still by far the largest market, and this has
seen a number of European manufacturers, such as JCB and Wacker Neuson,
relocate production to the US in the last decade.
North American production of wheeled loaders above 80 horsepower is only slightly

less than the region’s consumption of these machines. However, it is a large importer
of compact wheeled loaders, with local production only accounting for around 90
per cent of demand. Europe and Japan are the main supply bases for these machines,
and it is also an area of interest for Chinese OEMs, the larger of which are working
hard to establish themselves in North America.
The region is also a significant net importer of mini excavators, mostly from Japan.
As in the compact tracked loader segment, the imbalance should be somewhat
redressed in the coming years. Kubota’s investment in its plant in Salinas, KS will
see more mini excavators produced in-region along with the increase in compact
tracked loader production. In addition, the severing of the long-running joint
venture and OEM supply agreement between John Deere and Hitachi will also
change the landscape. John Deere has entered a new OEM supply agreement with
Wacker Neuson, which will produce the highest volume mini excavators for the
North American market at its plant near Milwaukee, WI. These will replace the John
Deere-badged machines which were previously manufactured in Japan.
There is a similar picture in crawler excavators, with the only in-region producers
being Caterpillar, John Deere (the former Deere-Hitachi joint venture) and Komatsu,
and to a much less significant extent, Gradall. The remaining suppliers to the market,
totaling almost 20 brands, all import their products.
Page 26
This is also the case with some of the lower volume equipment types such as
articulated dump trucks, telescopic handlers, and backhoe loaders. While North
America has significant production, it is not enough to meet demand, and numerous
manufacturers import from Europe.
In the other lower volume equipment types, North American production is roughly
in balance with demand.
Page 27
INTERNATIONAL PERSPECTIVES
SALES
Table 19. Regional sales of construction equipment, 2022-2023* (units)
China Western Europe North America Japan India
2022 2023* 2022 2023* 2022 2023* 2022 2023* 2022 2023*
Articulated dump trucks 5 6 1,849 1,685 5,500 5,515 70 70 - -
Asphalt pavers 1,430 1,300 1,188 1,156 2,200 2,410 480 480 706 850
Backhoe loaders 65 30 3,763 3,680 9,800 8,550 - - 35,410 38,000
Compact tracked loaders 35 30 2,160 2,180 98,415 96,440 - -
Crawler dozers 2,860 2,500 1,171 1,155 10,950 11,160 535 530 508 500
Crawler excavators 95,000 68,000 33,819 32,667 41,320 43,380 24,200 24,500 23,928 27,500
Crawler loaders 12 15 110 108 380 380 20 20 - -
Masted rough terrain lift - - 1,454 1,367 1,580 1,810 - - - -
trucks
Mini excavators 51,600 46,000 90,681 89,583 65,000 61,740 27,200 28,000 2,736 3,150
Motor graders 1,198 1,100 275 240 2,725 3,120 134 135 823 900
Rigid dump trucks 330 350 231 221 450 500 110 100 351 500
Skid-steer loaders 2,030 2,200 3,762 3,837 29,850 26,860 290 280 1,042 650
Telescopic handlers 57 80 35,877 35,137 20,685 24,690 5 5 467 550
Wheeled excavators 2,060 2,200 9,670 9,399 850 860 50 50 8 -
Wheeled loaders 80,800 70,000 30,851 30,079 29,150 28,740 12,200 12,200 3,432 3,750
Total 237,482 193,811 216,861 212,494 318,855 316,155 65,294 66,370 69,411 76,350
% Annual change -39 -18 +4 -2 +8 -1 -4 +2 +2 +10
* Forecast.
Chart 5. Regional sales of construction equipment, 2022-2023* (units)

350,000
300,000
250,000
200,000
150,000
100,000
50,000
-
2022 2023*
* Forecast.
With the exception of China, most construction equipment markets around the
world grew last year and are generally forecast to stabilize at a high level in 2023.
Taking all the regions above into account, sales fell 12 per cent last year, and are
forecast to drop another 5 per cent in 2023. However, when China is excluded, the
market grew 5 per cent in 2022 and is expected to remain at that level in 2023.
Page 28
CHINA
After two years of abnormally high sales in 2020 and 2021 thanks to stimulus
spending, the Chinese market collapsed in 2022 with a 39 per cent decline. This was
not only due to the stimulus money running out, but the impact was compounded
by turbulence in the Chinese real estate sector coupled with the country’s difficulties
in getting to grips with Covid last year. The only bright spot in China last year was
the mining segment, which invested in dump trucks and large excavators to take
advantage of high global commodity prices.
The market is forecast to continue to fall in 2023, but at a slower decline of about 18
per cent, to settle at just below 195,000 units. Domestic demand may flatten out
during 2024-2025, and the recovery will be very slow. A real recovery is expected
during the period of the 15th Five Year Plan (2026-2030), primarily as a result of
increased sales of compact equipment and the returning replacement demand; by
then the market may return to 270,000-300,000 units, but even that volume is still
very much lower than what has been seen in the recent past.
A significant challenge to the future market lies in lower demand from the real estate
sector, which, in line with past experience, has been closely allied to overall demand
for equipment. In the light of the saturated population and overheated supply,
demand for new housing projects will now decline, even though construction in the
most developed areas may remain steady. The traditional equipment demand from
this sector will therefore be significantly eroded, and other sectors will be unable to
make up this lost demand.
Further detailed analysis can be found in the Chinese Annual Review which is now available.
EUROPE
Construction equipment sales in Europe rose 4 per cent in 2022 to 216,861 units. This
increase from 2021’s already high level of 208,288 machines sold maintained the
market at a high level, and comparable with the previous record set in 2007.
The strongest growth in 2022 was seen in the larger markets of Southern Europe –
most notably Italy, which saw sales rise an impressive 18 per cent, while Spain’s
176 per cent growth was also well above average. France also performed well with
an 8 per cent rise in sales, thanks to broad demand for both heavy and compact
equipment. Growth in the UK was more subdued at 4 per cent, but the volume of
equipment sold was the highest ever seen. Meanwhile the German market declined
1 per cent, but this must be seen in the context of the extraordinarily high number of
machines which have been sold in the country in the last four to five years.
Off-Highway Research’s forecast for Europe is essentially for the market to stabilize
at a high level. Although single-digit percentage annual declines in sales are
Page 29
expected for the next three years, the market is forecast to remain above 200,000 units
over the medium term. Prior to the current peak, a volume above 200,000 machines
sold was only achieved once before for a single year in 2007.
A slowdown in housebuilding due to rising interest rates represents a threat to

compact equipment sales. However, Europe’s infrastructure markets are strong,
which should stimulate sales of larger earthmoving equipment.
Further detailed analysis can be found in the European Annual Review which is now
available.
INDIA
The most recent high in the Indian construction equipment industry was in 2018.
The market was disrupted in 2019 by the general election, which always causes a
downturn in sales due to the legal requirement to suspend the award of public
works contracts once the election is announced in case this is used as a mechanism
to curry undue favor with voters.
The market sank further in 2020 due to the pandemic and only recovered modestly
in 2021 as furth Covid variants impacted the country. This continued into 2022 to
some extent, but more significant was the impact of inflation, which increased
equipment prices and adversely affected the financial viability of construction
projects. As a result, the market only achieved a modest 2 per cent rise in sales last
year. However, within this disappointing overall picture, crawler excavator sale
grew 10 per cent, largely at the expense of backhoe loaders.
Broad-based growth in equipment sales is expected to resume this year, with the
market forecast to rise 10 per cent. This will be driven by a range of infrastructure
investment plans. With a general election due in 2024, this year’s budget has a
particularly strong emphasis on investment as Prime Minister Modi seeks a third
term in office.
Unfortunately, the election next year will temporarily derail growth and there will
be further market-specific disruption due to the introduction of CEV Stage-V
emissions laws in April 2024.
However, Off-Highway Research remains bullish about the medium and long-term
growth prospects in the Indian market and expects equipment sales to resume their
ascent from 2025 onwards.
Further detailed analysis can be found in the Indian Annual Review which is now available.
Page 30
JAPAN
Equipment sales in Japan fell 4 per cent last year following a strong post-pandemic
surge in 2021. As such, the decline is seen as more of a return to normal sales
volumes, rather than a cyclical downturn. Indeed, the Japanese market tends to be
relatively flat and stable, and generally only experiences single-digit percentage
changes from year-to-year.
Having said that, sales in Japan were constrained last year due to component
shortages and long lead times for machines. Some of that pent-up demand is
expected to spill over into 2023, helping the market to a 2 per cent rise in sales.
Thereafter, the market is expected to stabilize at more normal levels of around
63,000-65,000 unit sales per year.
The market is dominated by excavators, with 28,000 mini excavators and 24,500
crawler excavators expected to be sold this year, representing almost 80 per cent of
all equipment sales. The other high volume machine type is the wheeled loader,
which accounts for a further 18 per cent of demand.
Page 31
PRODUCTION
Table 20. Production by type and region, of construction equipment, 2021-2022
(units)
2021 2022 2021 2022 2021 2022 2021 2022 2021 2022
Articulated dump trucks 75 55 5,401 5,201 610 840 1,000 1,050 - -
Asphalt pavers 2,870 1,850 3,350 2,950 1,740 1,890 550 535 943 654
Backhoe loaders 1,850 5,670 16,620 17,413 5,750 5,215 - - 43,215 44,993
Compact tracked loaders 70 280 165 185 71,210 78,300 24,000 25,000 - -
Crawler dozers 8,300 8,800 3,454 3,480 9,530 10,070 2,000 4,500 226 254
Crawler excavators 234,200 168,000 11,168 12,607 15,170 18,790 90,000 95,500 24,334 24,743
Crawler loaders 20 12 442 380 190 195 - - - -
Masted rough terrain lift - - 2,282 2,691 1,500 1,180 - - - -
trucks
Mini excavators 128,700 111,400 43,559 49,948 26,340 19,500 132,000 136,000 1,529 2,063
Motor graders 8,202 8,657 276 237 2,320 2,250 1,200 1,500 585 688
Rigid dump trucks 402 543 95 30 480 560 1,300 1,620 1,308 1,730
Skid-steer loaders 5,860 8,680 364 430 30,990 33,135 200 700 3,108 4,747
Telescopic handlers 1,070 1,015 50,838 59,864 12,500 12,837 - - 547 1,124
Wheeled excavators 4,280 4,100 11,145 11,360 365 345 410 380 - -
Wheeled loaders 152,500 136,400 34,292 36,706 18,300 19,780 11,200 11,700 2,880 2,925
Total 548,399 455,462 183,451 203,482 196,995 204,887 263,860 278,485 78,675 83,921
% Annual Change +7 -17 +24 +11 +18 +4 +24 +6 +18 +7
Chart 6. Regional sales and production of construction equipment, 2022 (units)

500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
2022 Sales 2022 Production
The downturn in China meant that construction equipment production in the five
key regions listed above fell 4 per cent last year. These account for more than 95 per
cent of global equipment output, so can be taken as a proxy for the world market.
However, if China is excluded from the analysis, production in the four remaining
regions increased 7 per cent in 2022, following a 22 per cent increase in 2021.
CHINA
There are virtually no equipment imports into China and the size of the domestic
market is such that it is the dominant factor in the level of the country’s production.
Page 32
In that context, it is significant that Chinese equipment production only fell 17 per
cent last year against the backdrop of a 39 per cent fall in domestic sales. That points
to an industry which is becoming less dependent on domestic demand and
achieving greater success in export markets.
It also helped that last year most of the prime export markets for Chinese equipment
were extraordinarily buoyant. These are mostly emerging countries with economies
founded on their mineral and hydrocarbon wealth. High global commodity prices
over the last two years have been very helpful in stimulating demand for
construction equipment in these countries.
Long lead times and order backlogs for many of the traditional suppliers also helped
Chinese manufacturers with excess production capacity to make inroads into
Europe and North America in 2021 and 2022. Although the number of machines sold
be Chinese OEMs in these territories remains low, they are becoming more noticed
and building up their market shares.
Further detailed analysis can be found in the Chinese Annual Review which is now available.
EUROPE
Construction equipment production in Europe grew 11 per cent last year, a
significantly higher rate than the 4 per cent increase in sales. This reflects the strength
of demand for construction equipment in the world in general. Although the
majority of equipment manufactured in Europe is sold in the region, Europe is an
important global source for a number of key products including articulated dump
trucks, backhoe loaders and telescopic handlers.
Having said that, Europe has become a net importer of construction equipment in
the last 3-4 years, as a certain amount of production of crawler excavators in
particular has been re-located back to Asia by a number of manufacturers. It is also
the case that emerging markets such as Africa and the Middle East, which were
once served by European factories, are now served by China (as are many
other emerging economies).
It remains to be seen whether the stresses in global supply chains which have come
to light in the last two years will lead to a reversal of this trend. Certainly, there is
frustration in Europe at long lead times and inadequate supply of equipment , which
is exacerbated in some equipment types and for certain OEMs by the need to ship
products or sub-assemblies from Asia.
Further detailed analysis can be found in the European Annual Review which is now
available.
Page 33
INDIA
There are virtually no equipment imports into India, with all the sales in the country
being of locally produced equipment. Around a decade ago the volume of
production and sales in India were more or less equal, but today the country has
grown to be a modest net exporter of equipment. Production output last year was
just shy of 84,000 units, against domestic sales of 69,411 machines. This implies that
19 per cent of production, or around 16,000 units, was exported.
It is also significant to note that while sales in India only grew 2 per cent last year,
production output in unit terms was up 7 percent. This was due to the buoyancy of
export markets, which are generally countries around the rim of the Indian Ocean.
India’s great strength is of course the backhoe loader. It is by far the largest backhoe
loader market in the world and last year India accounted for more than 60 per cent
of global production of this type of machine. Backhoe loader production exceeded
sales by around 9,000 units, and these made up the bulk of Indian exports. Although
more niche, it should also be noted that India has become an important global source
for skid-steer loaders.
Further detailed analysis can be found in the Indian Annual Review which is now available.
JAPAN
Japan is one of the few countries in the world which exports more construction
equipment than is sold domestically. The mainstays of its production are crawler
and mini excavators, which are exported to markets around the world, the most
important being North America and Europe. Combined production of these two
machine types totaled 227,500 units last year, only 51,400 of which were sold in
Japan.
Total Japanese production grew 6 per cent last year against the backdrop of a 2 per
cent decline in equipment sales in the country. This underlines the point that
Japanese production is driven by overseas demand, rather than domestic
consumption.
The country also exports good numbers compact tracked loaders and other lower
volume types such as dump trucks, graders and dozers. While those more niche
products are likely to remain in Japan, compact tracked loader production is being
re-located by the two leading OEMs in the field to North America, which accounts
for some 95 per cent of global demand for this type of equipment.
Page 34
Page 35
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MARKET REPORT

The construction equipment industry in

NORTH AMERICAN SERVICE

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Off-Highway Research reserves all copyright under international copyright laws in

© Off-Highway Research. Contents confidential to the subscriber.

The construction equipment industry in

Articulated dump trucks 19

© Off-Highway Research. Contents confidential to the subscriber.

A REVIEW OF 2022 AND A FORECAST TO 2027

© Off-Highway Research. Contents confidential to the subscriber.

© Off-Highway Research. Contents confidential to the subscriber.

© Off-Highway Research. Contents confidential to the subscriber.

Chart 2. Canada: Sales and forecast sales of construction equipment, 2022-2027

The downturn in smaller equipment from 2023-2026 is expected to be offset to some

© Off-Highway Research. Contents confidential to the subscriber.

© Off-Highway Research. Contents confidential to the subscriber.

Having said that, many manufacturers reported at this year’s ConExpo-Con/Agg

© Off-Highway Research. Contents confidential to the subscriber.

ECONOMIC AND CONSTRUCTION ACTIVITY

Table 6. USA: Key economic indicators, 2017-2023*

However, by late 2021, as the pandemic receded following mass vaccinations, it

This was compounded by a lack of shipping and transportation capacity, the

© Off-Highway Research. Contents confidential to the subscriber.

The aftermath of the pandemic was therefore characterized by scarcity and

© Off-Highway Research. Contents confidential to the subscriber.

In contrast to the residential segment, non-residential building and infrastructure

© Off-Highway Research. Contents confidential to the subscriber.

The infrastructure segment, which is dominated by transportation and power (Off-

Table 9. USA: Construction industry employment statistics, 2018-2022*

A final point on the US construction segment is the shortage of workers.

© Off-Highway Research. Contents confidential to the subscriber.

Residential construction accelerated strongly in 2021 and enjoyed a robust increase

© Off-Highway Research. Contents confidential to the subscriber.

Table 12. Canada. Investment in infrastructure, excluding buildings and machinery

However, the infrastructure market in Canada weathered the pandemic slightly

MINING & QUARRYING

© Off-Highway Research. Contents confidential to the subscriber.

underground activities. In 2012 underground extraction represented 6 per cent of all

Table 14. Canada: Mineral production by commodity group, 2012–2021

In terms of value generated by Canada’s extraction industries, the government

© Off-Highway Research. Contents confidential to the subscriber.

Table 15. Canada: Value of extracted products, 2021.

Table 16. USA: Key data on farming, 2017-2021

© Off-Highway Research. Contents confidential to the subscriber.

© Off-Highway Research. Contents confidential to the subscriber.

© Off-Highway Research. Contents confidential to the subscriber.

COMPACT TRACKED LOADERS

© Off-Highway Research. Contents confidential to the subscriber.

MASTED ROUGH TERRAIN LIFT TRUCKS

© Off-Highway Research. Contents confidential to the subscriber.

RIGID DUMP TRUCKS

© Off-Highway Research. Contents confidential to the subscriber.

However, it should be stressed that Off-Highway Research is not forecasting the

© Off-Highway Research. Contents confidential to the subscriber.

© Off-Highway Research. Contents confidential to the subscriber.

Chart 4. North America: Production of construction equipment by type, 2022

© Off-Highway Research. Contents confidential to the subscriber.

North American production of wheeled loaders above 80 horsepower is only slightly

© Off-Highway Research. Contents confidential to the subscriber.

© Off-Highway Research. Contents confidential to the subscriber.

Chart 5. Regional sales of construction equipment, 2022-2023* (units)

© Off-Highway Research. Contents confidential to the subscriber.

© Off-Highway Research. Contents confidential to the subscriber.