While growth is expected, lingering pandemic concerns, ongoing supply chain issues, labor shortages and inflation could slow momentum.
While the global economy remains firmly on track to expand in 2022, a number of challenges could become obstacles for the construction equipment industry in the weeks and months ahead. According to the latest business intelligence data assembled for Association of Equipment Manufacturers (AEM) members, the global economy expanded by a robust 5.1% in 2021. And while projected growth of about 3.9% is expected for 2022, slower growth seems like a foregone conclusion. Short-term factors like the lingering COVID-19 pandemic, ongoing supply chain issues and persistent labor shortages, as well as long-term factors like deglobalization and inflation, have emerged to dampen enthusiasm a bit on the heels of what has been a strong economic resurgence worldwide. “The last recession we experienced ended the longest period of economic expansion in the United States, and that recession lasted from February 2020 to April 2020,” said Benjamin Duyck, AEM director of market intelligence. “Two months, in traditional economic terms, can’t even be accurately described as a recession. However, this economic disruption has impacted us all greatly, and we are still dealing with the aftereffects today – labor shortages, supply chain problems and higher interest rates.” READ FULL ARTICLE>>