The health of the construction industry is having a positive effect on the entire US economy with the additional jobs required for the new work being completed. Read more of the Business Insider article here:
Here's a great sign for the US economy: the crane market is coming back to life.
In a note to clients, Citi's Timothy Thein writes that after a recent round of checks with industry leaders, the crane market is rocking as construction picks up and projects waiting in the pipeline get the go-ahead to start.
Here are the two key takeaways for the US economy from Thein's report:
- More Work Available — Increasing activity levels, 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. More signs that construction jobs are increasing = positive read-thru to solely North America-focused United Rentals.
- Market Strength – 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 (Manitowoc & Terex source <150MT from Japan), and our recent take-away from 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.
Now, two big things to keep in mind here, one good and one less so.
Read the entire article here.