By Michael Roth – Rental Equipment Register
According to a quarterly construction report from Wells Fargo Bank, most market data indicators point toward a continuation of steady end user demand for 2024 and into 2025.
Over the past three years, the Construction Equipment sector has benefited from a sustained rise in construction activity and a surge in demand for equipment by end users, with the majority of CE dealers facing consistent demand for purchase and rental. According to a quarterly construction report from Wells Fargo Bank, most market data indicators point toward a continuation of steady end user demand for 2024 and into 2025. Infrastructure and mega project spending, mostly the result of recent federal legislation, will be a key driver of equipment demand, the report said. The most noteworthy spending will come from the $1 trillion infrastructure legislation passed in 2021 which will provide a springboard for activity with the bulk of the spending to occur during the next four years.
The Infrastructure Investment and Jobs Act, the Chips and Science Act, and the Inflation Reduction Act are the stimulus programs that should support construction equipment end markets. Eighty percent of the IIJA will go to new funds for roads, bridges, electric power grid; rail, transit and airports; broadband; water, sewer and environmental projects. The Chips Act will provide $250 billion towards American semiconductor sector. Projects must start before December of 2026 to qualify for funding. $39 billion will be for direct funding for U.S. semiconductor manufacturers. Thirteen electric vehicle and battery factories have been announced with an average cost of $3.5 billion.
