New logging equipment sales are off to a strong start, but the lumber market remains volatile. Industry analysts predict that the record-high lumber prices will continue through 2018 through 2019. Last year’s increased import duties have some worried that high prices could lead to a supply gap among exporters and importers in the United States. Even so, new equipment sales in the United States are already off to a strong start according to recent data from EDA. Let’s take a look at the recent reports, along with some predictions around the logging industry in 2018 and beyond. New Equipment Sales for February As mentioned above, logging equipment leasing is showing promising results to start the year. Here are the most popular equipment types among buyers from EDA’s report: EQUIPMENT TYPE BUYERS UNITS
We also have data on the top equipment buyers and lenders: Companies Buying Equipment
New Logging Equipment Lenders
Growing Demand for Equipment After a few years of stagnation in the industry, Freedonia Group finds that U.S. companies are now ready to make more logging equipment purchases. In fact, according to their predictions, the United States will account for as much as 19% of all global product demand through 2021. What’s the reason for this growth in demand? They point to a few factors. For one, they cite that the rise of construction activity in the U.S will drive the need for newer and better machinery in the coming years. In addition, they also point to increased roundwood production and the use of logging methods that require higher-end equipment as the cause for the growth in demand. Around the world, other countries are expected to see an increase in logging equipment purchases. Brazil, for instance, is expected to record greater increases in equipment purchases at around 6.5% annually through 2019. Smaller countries like Poland, Finland, New Zealand, and Indonesia will also see above-average growth in purchases over the next few years. Looking Towards the Future Even though the prices for lumber continue to remain high, many industry experts predict that demand for forestry equipment will continue to rise all the way through 2019. The United States is expected to lead all other countries in new logging equipment purchases, although buyers in the Asia/Pacific region will still play a considerable role. Comments are closed.
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