Recession-hit US construction firms eye bigger investments in Middle East

Dubai: American manufacturers of plant, machinery and construction vehicles are looking to the building boom in the Middle East to hedge their stocks against the continuing recession in the United States.

Indicative of the troubles in the US construction industry, the Dow Jones US Heavy Construction Index has seen a 40 per cent plunge in the last year from 698.76 points down to 402.54.

With greater drops predicted, US construction companies are aiming to increase their Middle East sales to save their profit margins.

Rick Eisminger, International Marketing Manager of Iowa based on-site cement mixing truck manufacturers, CemenTech, said: "Currently the Middle East accounts for less than five per cent of our total sales, but we plan to increase that to 20 per cent in the next few years."

CemenTech have committed to their first ever Middle East exhibition appearance at the Big 5 PMV, the region's premier plant, machinery, and construction vehicle.

Organisers Streamline Marketing Group have created a dedicated US pavilion at this year's show for the first time, and Eisminger said: "We're taking part because, by putting us together with key developers and contractors in the region, it offers American companies an excellent opportunity to break into the Middle East market and take advantage of the construction boom there."

A strong US presence at the Big 5 PMV will be of particular interest to local and international businesses based in the Gulf who are displaying growing interest in American companies, particularly in light of the competitive rates they can offer due to the low US dollar.