Construction equipment dealers are looking forward to improving trends in 2012 while acknowledging the challenges facing the industry, according to survey results recently released by GE Capital, Dealer Finance.

Forty percent of respondents said they expect sales to increase 3 percent to 5 percent this year, while 25 percent said they expect sales to increase 6 percent to 8 percent. A full 77 percent said the best time to increase inventory is within the first half of 2012.

At the same time, 57 percent cited slack demand for new construction – both residential and commercial – as the biggest hurdle that construction equipment distributors have to overcome this year.

Slightly more than half of respondents said improvement in the U.S. economy will have the greatest impact on the construction industry. The other important factors affecting the industry are access to credit for end users (23 percent) and reauthorization of the federal highway spending bill (20 percent).

When asked what single category of construction equipment they believe will be in greatest demand this year, 37 percent cited earthmoving equipment and 23 percent cited specialty equipment such as pavers, compactors, drills, crushers and grinders.