Used equipment inventories continue to put pressure on dealers’ bottom line. The latest Dealer Sentiments Report shows a net 11% of dealers says their used equipment inventory is too high compared to a net 7% the month prior.
It’s difficult finding anything positive coming out of the COVID-19 pandemic, but it appears the stay-at-home/work-from-home directives are pumping up the sales of small farm machinery.
It’s just about a wrap on the second decade of the 2000s and from my perspective things are looking a “little” better than they have in a while in some respects, but not so much in others. For the most part, the first half of the last decade is very different from the second half. But it’s simply a matter of ag cycles and plateaus, according to some.
When the U.S. announced tariffs on imported steel, there was a lot of speculation — and maybe even fear — about what it would mean for farm equipment prices. Now that the dust has settled a bit, we’re starting to get some answers.
In its Feb. 4 Ag Finance Databook and Feb. 15 Ag Credit Survey report, the Federal Reserve Bank of Kansas City characterized current credit conditions as “stabilized modestly but continuing to show signs of weakness … despite signs of stabilizing in the fourth quarter, bankers’ expectations were for loan demand to strengthen and loan repayment rates to weaken slightly in the first quarter of 2018.”
We’ve been reporting during the last few months that there were signs popping up in various places that suggest that business levels are improving for North American dealers. Many of these came from our own dealer surveys during the past year.
According to Ag Equipment Intelligence’s monthly Dealer Sentiments survey, since the start of 2017, farm equipment dealers’ year-over-year level of optimism has varied by as much as 42% from one month to the next compared to the prior year.
Nearly half (49%) of dealers who cater to the commercial and consumer-type equipment needs of hobby farmers, large property owners, turf, lawn and landscape contractors, as well as municipalities and parks maintenance customers expect solid revenue growth during 2017. This confident outlook comes on the heels of strong sales years in 2015 and 2016.
North American dealers surveyed reported that, on average, equipment sales were down 16%. Dealer commentary focused on the most pressing issues facing the industry.
Greg Petras, president of Kuhn North America, says despite the current market challenges the company is continuing to invest in its facilities, people and products.
Built on 90 years of expertise, Yetter Farm Equipment leads the agriculture industry in designing effective and innovative equipment for residue management, seedbed preparation, precision fertilizer placement, harvest attachments, strip-tillage, and more.
At Machinery Scope, we believe you deserve the best risk management solutions for your investments in heavy equipment. Since 2013, we have been proud to offer extended warranty, appraisals, and inspections. Machinery Scope is a family-owned business built on our experience in farming and equipment dealerships. We understand your business and provide a personalized and professional level of customer service. Machinery Scope has built a strong warranty product with our customers in mind, offering the same professional level of service from the time you get a quote, through the processing of a claim.
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