As part of a recent survey from Farm Equipment, conducted from May 3-4, when asked how they anticipated their customers' planned purchases to be impacted by the strike if it lasted 30 days or more, responses from Case IH and New Holland dealers were mixed. Many felt the impact of the strike would do little to affect an already difficult supply chain situation, with one New Holland dealer saying, "My customers already know we are not going to get much until fall anyway, and that was going to be very limited since we are a NH dealer."

Another Case IH dealer agreed, saying, "Equipment is already sold through fall, so impact would be on Q4 2022 / Q1 2023. With equipment already in short supply, I don't think this will change behaviors."

Still others were more concerned about the outcome, where one Case IH dealer stated, "Customers are reaching a point where price increases are starting to be met with less reception. Couple that with the unions demanding more while ag inputs are up and margins are down is not good image. I do not feel this will make my customers want to buy equipment."

More than one CNH dealer mentioned the possibility of their customers moving on to other brands if unable to get equipment from them. "Customers will go to whom ever has the equipment they need/have to have..No inventory no sales," said one New Holland dealer. Another Case IH dealer said, "Our competition (Deere/AGCO) have caught up and are well supplied. This is being used against us at this time."

See a full list of dealer responses by brand below.

How do you anticipate your customers’ planned purchases to be impacted if the strike lasts 30 days or more?

Case IH dealers:

• Customers are reaching a point where price increases are starting to be met with less reception. Couple that with the unions demanding more while ag inputs are up and margins are down is not good image. I do not feel this will make my customers want to buy equipment.
• Go to the competition.
• Right now there isn't much of an effect on purchases. CIH isn't accepting new orders for MY23 to this point, and we have been sold out of the current MY22 production for a long time. This is just delaying retail shipments even more that our customers have already been waiting a long time on.
• Their purchases will be further delayed.
• Equipment is already sold through fall, so impact would be on Q4 2022 / Q1 2023. With equipment already in short supply, I don't think this will change behaviors.
• Brand switch. MUD customer inventory turnover out of sync.
• They won't change anything.
• Very hurtful.
• Depends on what it affects. We were NOT notified there was even the possibility of a strike!
• I don’t see any difference. We can’t order a new tractor today.
• Farmers will consul with each other about having to wait and pay more because of the wait. If the JD customers had to wait and pay more; the Case IH customers will, at least understand.
• Planned purchases are already planned, 100% of our allocation has been retailed and production is slotted for model year 2022 built before October 1. The question is that of can the factories fulfill production promises for this year considering unknown duration of strike?
• Our competition (Deere/AGCO) have caught up and are well supplied. This is being used against us at this time.
• They will look for other brands when CIH isn't capable of providing equipment in an acceptable time frame.
• Planning ahead more.
• Yes, look elsewhere.
• We will lose market share.
• I do not see this strike affecting us dramatically as it only effects the Magnum plant for us. We already cannot order Magnum tractors and have very few coming this year as we are only getting YSR units.
• Heavily downward demand.
• Will affect fall purchases.
• At this point we will run out of inventory and sold retail orders may start to be cancelled because customers refuse to take delivery under and even longer lead time.
• We couldn't get Magnums out of Racine before, so don't think it will affect us.
• Not at all, we could not order new equipment after 1-10-22 for this season!
• With the supply chain already under stress, an additional impairment could severely effect the spring plant.
• With current availability the strike will delay shipments even further effecting customers tax planning.
• Change sourcing and brands.
• They'll buy others brands.
• Unknown at this point.
• We couldn't get equipment before the strike — they were cancelling more orders than they were shipping. Instead of looking out one year they may have to stretch to 2-3 years
• it will jeopardize end of year and spring 2023 purchases.
• It's just going to push deliveries out further. Some may say, "I am looking further for equipment, as our lead time grows."
• They will buy the brands that are able to build and delivery product
• Not by a lot. The last strike CNH managed to keep production running with replacements and kept the supply very close to what it was.

New Holland dealers:

• My customers already know we are not going to get much until fall anyway, and that was going to be very limited since we are a NH dealer.
• No issue.
• All stock has been slow for 12 months or longer.
• No different.
• Customers will go to whom ever has the equipment they need/have to have. No inventory, no sales.
• Nothing to change.
• I don't think that it's going to be a big impact. Everything is already taking much longer then normal, so a few weeks either way isn't going to make much of a difference either way.
• They are already impacted by not being able to get enough product.
• Delays in delivery.
• No impact.
• Negatively.
• Purchasing plans will be impact very little. However, delays in delivery could affect our customers' plans if the strike last longer than 60-90 days.

AGCO dealers:

• The supply chain is so out of whack, I don't think it will matter.
• Switch to AGCO.
• They will have second thoughts about purchasing CNH product.

John Deere dealers:

• For us, I would say not really going to affect us, unless parts become an issue.
• Timing of a short strike will limit impact of planned purchases. Customers will have made 2022 purchase plans. If it lasts over 30 days, then we start getting into 2023 early order programs which could move some customers towards other brands.
• Very little effect.
• Customers wondering when availability will happen and if the price increases before delivery. And am I getting a dated model year or current
• Buy from other brands.
• They were already behind due to supply chain issues, this just drove the business down further and created more issues for clients.
• I don't see a change.
• Very little.
• Probably little change, can't get anything anyway.
• The strike will be 60-90 days, and the supply chain will again get stretched.
• Not much will change. They are already scrambling.
• CNH will not let this strike go on for long.

Kubota dealers:

• They have inventory, and we have none.
• Cannot get anything now, so it will get worse.
• Minimal effect.
• Somewhat lower.
• Customers will purchase from dealer/manufacturer that have inventory. The JD strike got employees union and nonunion thinking. With the current environment that manufactures face with lack of good employee pool, supply change issues and now unions striking? Products will continue be late and later to the end user. Prices will rise spurring inflation.
• I believe we could see farmers that haven't been generally interested in trying something new walk through the door and be willing to try something when they are in need.
• We don't foresee any changes with our customers due to the CNH strike.

Other/shortline dealers:

• No factor.
• After John Deere gave in as quickly as they did, it was inevitable that other manufacturers were going to have labor issues as well. When the ag economy turns downward as it always does, are the unions going to take a pay cut?
• Further delayed, supply is so tight everywhere. Now where else are they going to go?

Additional Comments/Thoughts on the Strike

Case IH dealers:

• I don't blame the workers for going on strike. When the CEO's salary is 17,000,000 I'd be fed up as well. No one is worth that kind of money. It's the workers that put all the strain on their bodies to produce a product that are generating revenue for the company!
• This needs resolved quickly. We are already behind on production and it is causing many issues across the whole CNH line of equipment. These shortages and issues are forcing the customer to be the quality control department and with the problems we continue to face, we will continue to lose business. CNH needs to step up their game.
• This is ridiculous. We can't get equipment now that is at the factory and is expected to get worse.
• This is after the COVID shutdown. I'm sure they were compensated during it. So they were paid to stay home I'm pretty sure. And now you want to strike. I know that some things probably need to change. But I bet a lot of good people would like to work there.
• Opportunist strike.
• 401k of unionized employees is comparable to federal bureaucrats. Significantly higher than retail staff, parts, service, sales.
• Couldn’t order inventory before the strike and still can’t so I don’t see much change in anything.
• Hopefully gets resolved.
• We cannot tolerate anymore price increases. It is extremely out of line at the present time on all aspects of what we purchase from CNH
• Machinery already too high, cannot afford much more price increase.
• If management takes a stand; they lose. If management concedes; they lose. Typical lose/lose situation. Racine should not be surprised if future CNH production needs are sourced elsewhere.
• It is too soon to tell the impacts. It depends on the duration and actual shipments of products. Certainly a strike doesn't help reach our original sales forecast.
• Orders are already taking forever to reach dealers, what's another 60 days?
• CIH non-union facilities are performing well and take pride in the brand they support. CIH should learn from that business model.
• Both Deere and CIH strikes will have impacts on the future sales. The up trend we are now in will cycle back down eventually, which will lead to less demand for new and cash flow will be more of an issue with lower commodity prices and higher interest rates.
• I understand that the union wants better benefits and pay for their members, but the dealers and the farmers that rely on the products they build do not have the luxury of striking and negotiating better wages and benefits. Maybe the UAW should remember they are helping to feed the world when they get greedy, and they have it better than a lot of people already.
• Leverage is all on the union side. Dealers are inconsequential to both sides.
• We need the product and the workers will never get back wages lost during the strike. No one wins
• Thank you UAW, where unions always make the best decisions for their leaders. You would have had to be a fool not to see the pattern bargaining coming as a result of the Deere strike.
• The Burlington plant provides us cornheads and some platforms. Won't make a lot of difference, because we only have 3 new combines coming for fall.
• Needs resolution fast.
• Don't know what they are seeking.
• Case IH should have tried harder to avoid this.
• UAW is useless.
• The company would not supply equipment prices for months, I think knowing the strike was coming and waiting to see the contract strike increases before they increase equipment prices to us dealers
• Always price increases, but we hope that this will not be used to artificially hike pricing ahead of a need to.
• If the unions did not take so much of the workers wage the workers would have more than enough wage to live and retire well. Unions were very good to help workers conditions and pay in the past, now they just suck more from the employer and cause increase cost to build things.
• Any time labor costs increase, the cost must be passed along and in the long run it's the customer that ultimately pays the price. Our customers can't stand much in price increases.

New Holland dealers:

• Since covid pricing has gone through the roof, price gouging is terrible by all manufacturers. But there will be a day and the market will have to adjust, when this ends there will be a glut of equipment on the market. A return of the 80's may be closer on the horizon than we think?
• Our bottom line depends more on CNHI policy than the strike.
• Only T8 tractors affected for us. Al T7 and down New Holland tractors come from UK or other EU countries.
• Feel like they are striking simply because of the John Deere strike
• Should have went with all New Holland plants non-union.

AGCO dealers:

• Let them strike. Only a fool works for a union.

John Deere dealers:

• Recalling the last CNH strike, CNH locked employees out for quite a while after the strike was ended. Since this impacts only 2 of their 38 plants, as their CEO stated, it isn't a major impact, and they will hold out as much as possible. If the union expands the strike to additional plants, then expect a different outcome on concessions and timing.
• Will employees be willing to reduce benefits when the economy changes? Probably not!
• Availability is worse, prices go up, and the company stock prices rise.
• It's a joke.
• Plenty of labor is available but no one wishes to work when they get everything handed to them.
• Thank you for asking our opinion. So very much appreciated.
• CNHI guys watched the Deere people last fall in their strike. They want similar compensation for the same type of work.

Kubota dealers:

• Strikers are out of the world loop right now, very bad timing, no ethics by the union leaders.
• Difficult times will continue for the foreseeable future.
• The strike may lead to dealers increasing prices of current inventory, which is already at an all time low to satisfy income levels within dealers.
• I would assume this strike and resolutions will be most similar to the Deere strike. And consequently considerable price increases on equipment

Other/shortline dealers:

• Poor time for unions to strike when we are on the front end of a major recession.
• I do not have an opinion about what CNHI workers "deserve."
• No bargaining details being released so cannot comment on above questions. Strike will only make equipment supply situation worse. Bigger concern is parts supply to keep customers in the field farming.
• It's dumb, just like the John Deere strike.