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The construction equipment industry declined by 34.2 per cent in 2009 and is only expected to slightly rise this year.

The North American construction equipment manufacturing business is still in a slump, and is expected to only slightly turn around this year, according to the Association of Equipment Manufacturers (AEM).

Canada's overall construction business industry dropped 34.2 per cent at the end of 2009. A growth to 6.5 per cent is expected this year, with a jump to 14.3 per cent in 2011. This should level off in 2012 to an increase of 11.1 per cent.

In "2010 Construction Equipment Outlook," AEM's president, Dennis Slater, said unemployment will be down as well.

"Even with modest rebound in the next few years, the construction equipment industry will still be down by double digits, and there will still be double-digit industry unemployment," he said.

Survey respondents thought credit availability, interest rates, consumer confidence levels, the U.S. dollar, and international business had an influence on sales. They also predicted housing starts and highway funding levels will likely play a large role in business rebound.