The construction industry is one market where fluid power technology is still lagging behind, and that's because this industry is still losing jobs. The construction equipment industry has been one of the hardest hit during this slump and continues to weigh down the rest of the economy.
Analysts at IHS Global Insight estimate that this sector's economic output has contracted by nearly 40 percent resulting in the loss of approximately 550,000 jobs. Spending on construction equipment has fallen 50% compared to its peak in 2006.
To call more attention to the problem, two construction equipment industry trade groups have joined to form Start Us Up USA! A joint effort by the Association of Equipment Manufacturers (AEM) and the Associated Equipment Distributors (AED), this grassroots campaign was created as a way to bring attention to the critical economic situation facing the construction equipment industry and to urge Congress to take immediate action on key solutions.
On January 29, AED and AEM were joined by 39 other national organizations representing the agriculture, distribution, construction, manufacturing, energy, aviation, and professional services sectors in calling on Congress to support a proposal mentioned in President Obama’s State of the Union speech to “provide a tax incentive for all large businesses and all small businesses to invest in new plants and equipment.”
AED and AEM are also urging Congress to swiftly reauthorize the federal highway program and increase investment in roads and bridges to stop the job bleed and put the construction industry back to work. As the fluid power market starts to rebound in other sectors, let's hope that actions such as these will bring the construction industry back to life.
To see the information this grassroots organization has compiled, statistics on the economic impact in your state, and what they are doing to take action, check out their website at www.StartUsUpUSA.com