Heavy Equipment Sales Decline Amid Tariff Pressures

Industry report cites high interest rates, fewer infrastructure projects, and tariffs as key factors impacting the sector.

Published on Mar. 2, 2026

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A new industry report shows that sales and employment in the heavy equipment manufacturing sector have declined in recent years, with tariffs cited as a key culprit. The Association of Equipment Manufacturers report found total sales and indirect economic output fell slightly from 2022 to 2025, while direct employment dropped from 423,000 to 421,000 workers. Factors like high interest rates and the phasing out of infrastructure funding also contributed to the slowdown, but tariffs on steel, aluminum, and other imported components have made it more expensive to build equipment domestically.

Why it matters

The heavy equipment industry plays an outsized role in the economies of many U.S. states, with Texas, Iowa, Wisconsin, Illinois, and Ohio each employing over 25,000 people in the sector. The decline in sales and jobs could have broader economic ripple effects, especially in manufacturing-heavy regions. The report also highlights ongoing trade tensions and the impact of tariffs on American manufacturers trying to compete globally.

The details

According to the industry report, total sales and indirect economic output from the heavy equipment sector was $902 billion in 2025, a slight contraction from $905 billion in 2022. Direct employment fell to 421,000 workers, down from 423,000 three years prior. The association cited several factors for the woes, including high interest rates, the phasing out of infrastructure funding, and tariffs. Tariffs have made it more economical for manufacturers to build equipment overseas and import it, rather than assemble domestically using imported parts and components.

  • The industry report is released every three years at the triennial CONEXPO-CON/AGG trade show.
  • The report was obtained in advance by The New York Times and will be officially released on Monday, March 2, 2026, ahead of the trade show opening on Tuesday.

The players

Association of Equipment Manufacturers

The trade association that represents heavy equipment manufacturers and released the industry report.

Kip Eideberg

Senior vice president of government and industry relations for the Association of Equipment Manufacturers.

Hyster-Yale Inc.

A Cleveland-based forklift manufacturer that paid $40 million in tariffs last year, leading to a $27 million decline in operating profit on its forklift business.

Rajiv Prasad

Chief executive of Hyster-Yale Inc.

Stephen Bullock

President of Power Curbers Companies, a North Carolina manufacturer of equipment that creates roadside curbs.

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What they’re saying

“The path that we are on is leading us to less manufacturing in the United States.”

— Kip Eideberg, Senior vice president of government and industry relations, Association of Equipment Manufacturers (The New York Times)

“By and large right now, it is more economical to build a forklift overseas, import it and pay the tariff on the whole good than it is to import the parts and components that you need to build that forklift domestically.”

— Kip Eideberg, Senior vice president of government and industry relations, Association of Equipment Manufacturers (The New York Times)

“If we impose a 20 percent tariff on India and they were to retaliate with a 20 percent tariff on our product, that would be crippling. We have not seen that come to fruition, but it is still a serious threat.”

— Stephen Bullock, President, Power Curbers Companies (The New York Times)

What’s next

The Association of Equipment Manufacturers is pushing for changes to tariff policies, such as no tariffs on imported components for companies that assemble equipment in the United States and have 'substantial domestic content.' They are also calling for new tariffs targeting foreign producers that enjoy 'artificial advantages' like government subsidies.

The takeaway

The decline in the heavy equipment manufacturing sector underscores the ongoing impact of trade tensions and tariffs on American manufacturers, even as the industry continues to play a vital role in the economies of many U.S. states. The report highlights the challenges facing domestic producers as they navigate a complex global trade landscape.