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North America Economy Faces Multiple Problems
Jim Downey SUMMARY. The United States economy is facing several serious problems that don’t have simple solutions and are not likely to be solved for several years, reaching out to the presidential elections in 2024.
Take your pick of problems: Inflation. Stock Market. Climate Changes. Interest Rates. Housing Prices. Gasoline Prices. Food Prices. Social Unrest. Political Conflicts. Worker shortages. Supply Chain Shortages. Russia-Ukraine Conflict.
The bottom line here is that consumers, investors, businesses, and governments are uncertain about what the future holds for the next several years, and this uncertainty makes it difficult to build multiple-year action plans, whether it’s for purchases, manufacturing, marketing, or investing.
Uncertainty makes people nervous, and Uncertainty is the name of the game in the U.S. for the foreseeable future.
However, we’re still optimistic about the U.S. economy and we see 2022 production growing by 11.6% but that activity is likely to fall to 2.7% next year and drop again to 1.5% in 2024.
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UTV & ATV Market Dynamics
NORTH AMERICA REPORT
Michael Aistrup Market Overview. The global UTV/ATV market size was US$ 8.66 billion in 2021, with a compound annual growth rate (CAGR) of 6.13%. PSR forecasts the global market to grow to US$ 11.67 billion by 2026
The North American UTV/ATV market was valued at US$ 6.66 billion in 2021, and it is expected to reach US$ 8.50 billion in 2026, registering a CAGR of about 5.00% during the forecast period (2022 – 2026).
Applications. UTVs/ATVs were originally associated with sports and recreational activities. Application of these vehicles has diversified, and they are now being used in the agricultural sector and for patrolling, hunting, gardening, and other activities.
A recent application is the United States Army. The military has shown interest in acquiring UTVs/ATVs with features such as rapid transportation, the ability to carry nine fully armed soldiers, agility, and a minimum of 55 mph.
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DATAPOINT. North American Pavers, 2022 Estimated Production: 2,900 Units
NORTH AMERICAN REPORT
2,900 units is the estimate by Power Systems Research of the number of Pavers to be produced in the U.S. and Canada during 2022.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Exports: Collectively, up to 40% worldwide.
Market Share: With combined plant totals of 20%, VT LeeBoy (includes LB Performance Paving) leads in production of Pavers in North America. In second position with 17% is Weiler; third place is held by Cat Global Paving with 16.5%.
Trends: In 2021, production of Pavers in North America increased 17%. Production is expected to gain another 3% in 2022 to about 2,900 units. This increase is based on growth in road related repairs and increased international sales.
Despite 2020 uncertainties, mostly affected by COVID related issues, 2021 showed a strong increase in production. This turnaround from 2020 focused on repairing crumbling roads and bridges that are a concern throughout many regions. COVID factors caused government transportation departments to reduce or cancel road construction and maintenance projects in 2020.
Stabilization of this paver market segment this year will depend on factors that may include public funding and the demand for “greener” products due to environmental issues and concerns. Overall, production is expected to rise slowly over the next three years with a gain of up to 5%. PSR
Carol Turner is Senior Analyst, Global Operations, at Power Systems Research
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E-Motorcycles Market Update
NORTH AMERICAN REPORT
Michael Aistrup The global e-motorcycle market has experienced high growth in the last couple of years, fueled in part by the declining price of Lithium-ion batteries. The battery is one of the most expensive components of an e-motorcycle, and changes in the price of Li-ion batteries affect the entire cost of an e-motorcycle. The cost of Li-ion batteries has been steadily declining, and this trend is likely to continue.
Power Systems Research has forecasted the global CAGR…
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Cummins Develops Hydrogen-Powered Engines
NORTH AMERICAN REPORT
Chris Fisher Cummins, Inc., is working to develop hydrogen-powered engines, using approaches for Hydrogen combustion engines and hydrogen fuel cells.
Both hydrogen engines and hydrogen fuel cells are better suited for long haul and many regional-haul truck applications than pure battery electric vehicles.
In North America, Cummins plans to introduce hydrogen internal combustion engines across their existing engine platforms starting in 2024.
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DATAPOINT: 2022 U.S. Production Hydraulic Power: 6,800 Units
6,800 units is the estimate by Power Systems Research of the number of Hydraulic Power Units to be produced in the United States during 2022.
A Hydraulic Power Unit (HPU) usually refers to a self-contained, free-standing engine assembly that is used to drive one piece of equipment. HPUs are powered by internal combustion engines or AC/DC electric motors.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: Dominating production of HPUs in NA is Stanley Hydraulic with 49% of total units produced. In second position is Great Northern (Brave) with 9.5%. Tradewinds Powers is third with 8%.
Trends: Production of HPUs in the US increased 22% from 2020 to 2021. Production is expected to increase another 6% from in 2022. Hydraulic Power Units (power packs) are used in a variety of applications and industries ranging from marine, construction and military applications.
The overall gain in 2022 is attributed to the increase in construction and marine related activities. This product segment will continue to increase steadily over the next 5 years as warranted by current economic conditions and related demands. Expect an additional 10% increase by 2025. PSR
Carol Turner is Senior Analyst, Global Operations, for Power Systems Research
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DATAPOINT: US Lawn & Garden Tractors, 2022 Production Estimate, 709,700 Units
709,700 units is the estimate by Power Systems Research of the number of Lawn & Garden Tractors to be produced in the United States during 2022.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: With 39% of total units produced, Husqvarna leads in production of Lawn & Garden Tractors in North America. In second position, with combined plant totals, is MTD with 33.5%; third, also with combined plant totals, is Deere & Co. with 23.5%.
Trends: In 2021 production of Lawn & Garden Tractors in North America (US) increased 4.5% over 2020 to 683,250 units. Production in 2022 is expected to reach 709,700 units, a gain of 4.5%, compared to 2021. The forecasted gain is driven by the demand for new fuel-efficient models in the market along with the demand for new equipment.
Production has been slowed somewhat by the temporary lull in production of the Craftsman line, the saturation of new products in the market, and the unfavorable mowing conditions caused by the wet spring.
The latest models offer a variety of features for homebuyers based on yard size. Entry-level lawn riders are suited for 1.5 acres or less and usually have 1-cylider engines. Mid-grade riders have twin cylinder engines with high HP’s that work well in large cutting areas.
Production is expected increase up to 5% by 2025; lifespan of this product has about a 10-year turnover. PSR
Carol Turner, is Senior Analyst, Global Operations, for Power Systems Research
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DATAPOINT: North America Dumpers/Tenders, 2022 Production, 1620 Units
1,620 units is the estimate by Power Systems Research of the number of Dumpers/Tenders to be produced in North America during 2022.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: With 62.5% of total units produced, Country Home Products leads in production of Dumpers/Tenders in North America. In second position is Allen Engineering with 19.5%; third, is Indy Equipment with 10.5%.
Trends: Dumper/Tenders, commonly referred to as the Power Buggy, are sought after pieces of equipment because they are much faster than a conventional wheelbarrow and they accelerate job site related activities.
In 2021, production of Dumpers/Tenders in North America increased 7% to 1,542 units. Expect production to increase another 5% this year. The increase is attributed to the global economy along with the demand for new products for construction and mining related activities.
The decline in 2020 was attributed to product saturation in the market and also was somewhat related to COVID-19 shutdowns, even though consumers/contractors were still purchasing products.
At this time, many manufacturers are having longer production lead times due to lack of parts from suppliers and staffing shortages. Expect production to increase an additional 5% by 2025. PSR
Carol Turner is Senior Analyst, Global Operations, for Power Systems Research
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Doosan Bobcat Aims at NA Market with Fully Electric T7X
SOUTH KOREA REPORT
Doosan Bobcat unveiled the world’s first fully electric construction equipment to the global market through CES 2022, the world’s largest technology exhibition.
Doosan Bobcat held a media day event at the Mandalay Bay Convention Center in Las Vegas to introduce the T7X, which won two CES 2022 Innovation Awards.
The T7X is the world’s first fully electric construction equipment that eliminates all hydraulic components. It is comparable in performance to existing internal combustion engine equipment and emits no harmful substances. Noise has been greatly reduced to one-tenth the level, and energy efficiency has been maximized.
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DATAPOINT: 2022 North America Production Estimate, Harvesters 460 Units
Download PDF460 units is the estimate by Power Systems Research of the number of agricultural harvesters to be produced in the U.S. during 2022.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: With 48.5% of total units produced, Deere leads in production of Harvesters in the U.S. In second position is Oxbo International’s combined plant totals of 24%; third, is Flory with 10.5%.
Exports: Collectively, up to 1% worldwide.
Trends: In 2021, production of Harvesters in NA increased 13%. Production is expected to gain another 3% in 2022. The Ag industry has fluctuated in recent years and demand for new products declined a few years ago due to falling commodity prices. Farmers couldn’t afford new equipment and spent years refurbishing existing units.
Currently, it appears that growers are moving from hand to machine harvesting. They are increasingly using over-the-row mechanical harvesters to pick produce and like commodities. Especially during COVID times, this type of machinery reduces the need for manual labor during labor shortages. The increase in harvester production is also attributed to the desire for new machinery that increases productivity and profitability.
Expect production to fluctuate over the next 3-5 years with an increase of 5% by 2025. PSR
Carol Turner is Senior Analyst, Global Operations, at Power Systems Research
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