News
Financial outlook for equipment manufacturers
The financial outlook for equipment manufacturers in the next 30 days is bearish, according to a survey by the Association of Equipment Manufacturers.
Kip Eideberg is the senior vice president of government and industry relations with AEM.
“They continue to look at reducing forecasts for the rest of the year by as much as 30 percent,” he says. “The news for the next 30 days is probably even worse with continued decreased demand and reduced financial outlook.”
Eideberg says the road to recovering is lined with warning signs for the industry. But, he says the US Mexico Canada Agreement going into effect on Wednesday is a bright spot.
“That will bring some certainty to the industry in terms of the ability to access those critical markets,” he says. “Thirty percent of all equipment made in the United States is destined for export so getting that free trade deal up and running will help.”
This is the second survey by AEM about the impact of COVID-19.
The equipment manufacturing industry in the US supports 2.8 million jobs and contributes about $288 billion to the economy each year.
