Construction Equipment Sales to Increase in 2013, GE Capital Dealer Survey Reveals

Thu Feb 7, 2013 8:00am EST

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Expect retail construction and highway projects to spur activity 
IRVING, Texas--(Business Wire)--
According to survey results released today by GE Capital, Equipment Finance,
participants in the construction equipment industry are more optimistic about
2013, with 75 percent saying they expect retail sales of construction equipment
to increase by at least three percent this year, up 10 percentage points over
last year`s survey. Within this group, 24 percent say they expect sales to
increase six to eight percent. 

More than three-quarters of respondents say the best time to increase inventory
is within the first half of 2013. Nevertheless, nearly two-thirds cite slack
demand for new construction - both residential and commercial - as the biggest
hurdle facing construction equipment distributors this year. 

Slightly more than half of respondents said improvement in the U.S. economy will
have the greatest impact on the construction industry. Rising prices for
construction materials (20 percent of respondents) and access to credit for
end-users (14 percent) were the next most important factors. 

"These results appear to confirm what we`re seeing, which is a gradually
strengthening construction market," said Jim Kelly, general manager of GE
Capital`s Vendor Finance business. "Although there are a handful of U.S.
economic issues that may create uncertainty and temporarily hamper growth in the
first half of the year, it appears that retail construction is picking up, which
should lead to increased commercial construction later this year or early in
2014." 

Kelly noted that the federal highway bill, passed in July 2012, should stimulate
increased public works activities. Earthmoving equipment - instrumental in road
building - is expected to be in greatest demand this year, according to 45
percent of respondents. At the same time, 22 percent believe compact equipment
will most popular and 14 percent chose materials handling equipment. 

To stay on top of developing trends, participants can access GE Capital`s
Construction Industry Research Monitor here:
http://www.americas.gecapital.com/insight-and-ideas/industry-research. 

GE Capital`s survey was conducted Jan. 15-17, 2013. The 49 respondents included
a variety of construction industry participants. 

About GE Capital, Equipment Finance

GE Capital`s Equipment Finance business provides commercial leases and loans
ranging from $5,000 to $25 million for the wholesale and retail financing of
equipment to thousands in North America in over 12 industries.With long-term
relationships and dedicated channel support, Equipment Finance works with small,
medium and large enterprises as well as state and local governments.From
web-based application submittals to online account management, its dedicated
industry professionals bring knowledge and expertise to every relationship. 

GE Capital offers consumers and businesses around the globe an array of
financial products and services. For more information, visit www.gecapital.com
or follow company news via Twitter (@GECapital). 

GE (NYSE: GE) works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in energy,
health and home, transportation and finance. Building, powering, moving and
curing the world. Not just imagining. Doing. GE works. For more information,
visit the company's website at www.ge.com.

GE Capital, Americas
Lisa Tibbitts, 203-956-4582
Lisa.Tibbitts@GE.com

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