Business Insider Reports Pick Up in Crane Market

April 15, 2015 - According to the Business Insider, the crane market is coming back as construction picks up and projects are waiting to start.

 

According to Citi's Timothy Thein, activity levels are increasing, as previously stalled projects are going-ahead, and some modest traction on rates is giving more contractors and rental houses the confidence to pull the trigger on new crane purchases.

 

He also noted that Increased infrastructure activity and high-rise construction are two of the major contributors cited for improving crawler demand. Very few high-capacity crawlers are used in upstream energy jobs, and the Gulf Coast suggests the current wave of downstream/industrial projects (heavy users of high capacity cranes) will go ahead, though obviously sustained lower oil prices put the next big project slate at risk.

 

"A reading on the crane market is a great bellwether for economic activity, as a crane is just about the most expensive piece of heavy equipment you can invest in," said the Business Insider article. 

 

The global market remains challenged though, and the crane demand outside the U.S. has been sluggish so far this year. Other soft spots are the strengthening U.S. dollar and the decline in oil prices.