Agriculture in the World

New equipment sales decline year-over-year, as used market holds steady

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Ag equipment gross sales are exhibiting a decline in comparison with final yr, trying on the first seven months of 2022, nonetheless, this isn’t essentially indicative of a nasty yr, says the Affiliation of Gear Producers (AEM).

The AEM flash report for the month of July reveals a lower of seven per cent for tractor gross sales in Canada and 14 per cent within the U.S., nonetheless, that is compared to final yr which had very robust numbers in the best way of kit gross sales.

Curt Blades, senior vp at AEM, says the decline in gross sales doesn’t imply that the demand isn’t there.

“I believe everyone knows the provision chain challenges which can be actual. Of us who wish to purchase new machines, however they only merely can’t get them. Sellers wish to provide them and so they simply merely don’t have them on the stock financial institution. So I believe these are these are very actual issues which can be figuring this,” says Blades.

He says the provision chain challenges are particularly prevalent in terms of tractors with beneath 40 horsepower, but the numbers are trending upwards for gross sales for 100 plus horsepower tractors. These gross sales have seen a 21 per cent improve when evaluating July 2022 to July 2021 and a 12 per cent improve yr over yr.

Shoppers, retailers and producers are all seemingly uninterested in listening to, and utilizing, the excuse of provide chain challenges, nonetheless, it continues to be a problem for a lot of, but Blades says we could also be begin to see the sunshine on the finish of the tunnel.

“What I’m listening to from our members which can be on the provision chain themselves, the element producers, and people of us which can be supplying to the tier one, and tier one suppliers to the OEMs, they’re saying that they’re seeing some clear gentle on the finish of the tunnel, we’ve obtained the survey outcomes to level to that. So it sort of leads me to imagine that we’re approaching the tail finish of this as an excuse for for among the delays. However I additionally assume that it is rather actual. And a few of these challenges are going to linger with us for plenty of plenty of months and weeks,” says Blades.

Regardless of new gear gross sales being down general, used gear gross sales continues to carry robust south of the border. Blades says though this can be a nice shock, it’s not a shock to the system to see these numbers maintain regular. He attribute this to the sustained demand coupled with the aforementioned provide chain points throughout the new gear business, which if new gear isn’t obtainable, customers will discover a product they want and that may come from the used market.

The subsequent flash report from AEM is about to come back out in September and can replicate August’s numbers for the U.S., Canada and Russia.

 

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