Despite challenges throughout 2022, the year was mostly a successful one for equipment manufacturers. Photo: Animaflora/iStock / Getty Images Plus/Getty Images
Despite challenges throughout 2022, the year was mostly a successful one for equipment manufacturers. Photo: Animaflora/iStock / Getty Images Plus/Getty Images
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Equipment manufacturers optimistic heading into 2023

After a taxing yet prosperous 2022, construction equipment manufacturers are hopeful they can carry their success into the new year.

Stewart
Stewart

At the same time, Screen Machine and its dealers are aware that challenges could persist into 2023.

“That [conversation] has been typically countered by concerns about long lead times across the entire heavy equipment industry, inflation, the cost and availability of diesel fuel and an unpredictable economy and political climate,” says Stewart, Screen Machine’s director of marketing. “We and [our dealers] have collectively described it as ‘cautious optimism.’ The fact that 2023 is a ConExpo-Con/Agg year and we expect to see funds from the [IIJA] finally reach the community level are added reasons for optimism. But, again, there are contrasting concerns.”

Alex Kanaris, president of VDG (Van der Graaf), agrees that these moving targets could make 2023 more challenging to predict.

“Considering the level of inflation and the high cost of energy, gas and food, it is reasonable to conclude that if these don’t get under control, there will likely be a recession next year,” Kanaris says. “The recent elections have not been favorable to attaining some measure of checks and balances and, unavoidably, there are going to be some cutbacks that will have a negative effect on some companies.”

Alex Kanaris
Kanaris

One concern for 2023 is finding and retaining reliable employees at both the manufacturer and dealer levels. Screen Machine, like many other manufacturers, has been forced to adjust its planning process.

“Production planning has become very fluid out of necessity as we encounter extended delivery times on componentry, especially engines,” Stewart says. “But we also have seen spot availability on pumps and electrical items and a number of other vital parts. All this combines to make predicting and planning for the year ahead extremely difficult.”

Hiring employees has remained a challenge for VDG since the beginning of the pandemic. Kanaris hopes that emerging factors such as a desire to work remotely will subside in the coming years. In the meantime, the company has taken steps to counteract the workforce challenges.