Milwaukee, WI – A glimmer of optimism is emerging for non-road equipment manufacturers as the Association of Equipment Manufacturers (AEM) forecasts a potential recovery in 2026, following a period of notable headwinds. Despite ongoing challenges including high interest rates and supply chain disruptions,recent developments offer a cautiously hopeful outlook for the sector.
The non-road equipment industry, vital to construction, agriculture, forestry, and mining, has faced considerable pressure in recent years. While demand remains, manufacturers have struggled with elevated costs and logistical bottlenecks. Though, AEM reports that declining commodity prices and stabilization in freight rates are providing some relief. Further bolstering confidence, Meta and Microsoft are repurposing decommissioned nuclear power stations in Pennsylvania and Illinois to power their data centers, signaling ample long-term investment in U.S. infrastructure. Additionally, recent benchmark interest rate reductions by the Federal reserve are expected to stimulate investment in U.S. construction, a key driver of demand for non-road equipment.
AEM’s analysis indicates that these factors, combined with anticipated easing of supply chain constraints, could pave the way for a more robust market in 2026.The industry supports over 178,000 jobs in the U.S. and contributes billions to the national economy, making its recovery crucial for broader economic growth. Manufacturers are closely watching economic indicators and policy decisions as they navigate the current landscape and prepare for a potential upswing.
