Production Equipment Sales Still in Decline
Total retail sales of 2WD and 4WD tractors and combines continue to track higher than their comparable 2015 levels and 5-year average, with strong under 40HP tractor sales offsetting significant declines in the larger production equipment, according to the Association of Equipment Manufacturers (AEM), the leading trade organization for off-road equipment manufacturers and suppliers.
U.S. retail sales of farm tractors under 40HP were up 33.2 percent for March 2016 and up 26.1 percent year-to-date, compared to the same time periods last year. Retail sales for 2WD tractors of 40-100HP increased 10.1 percent in March compared to last year, bringing year-to-date growth to a positive 3.2 percent.
However, first-quarter 2016 sales of 2WD tractors over 100HP declined 32.9 percent, and January-March 2016 sales of 4WD tractors dropped 38.2 percent, compared to first-quarter 2015. Combine sales were down 14.7 percent for first-quarter 2016 compared to last year.
“Sales of the compact utility tractors have continued to benefit from their broader customer base used in small acreage farms in addition to some livestock applications,” said Charlie O’Brien, AEM senior vice president.
“While some segments may show signs of leveling off or stabilizing, sales of the larger production equipment are still showing significant downward trends from last year; the marketplace is still experiencing the effects of persistent lower commodity prices and higher used-equipment inventories,” said O’Brien.
About the Report
Data from AEM’s Ag Tractor and Combine Report is provided monthly and is derived from AEM member companies through our proprietary statistical reporting programs. The analysis of the data is provided by AEM’s Market Intelligence department.
Visit www.aem.org/agreports to view the reports, as well as reports from Russia and Canada.
About the Association of Equipment Manufacturers (AEM) – AEM is the North American-based international trade group providing innovative business development resources to advance the off-road equipment manufacturing industry in the global marketplace. AEM membership comprises more than 850 companies and more than 200 product lines in the agriculture, construction, forestry, mining and utility sectors worldwide. AEM is headquartered in Milwaukee, Wisconsin, with offices in the world capitals of Washington, D.C.; Ottawa, Canada; and Beijing, China.
www.aem.org - Follow AEM @AEMAdvisor and facebook.com.