In May of this year, AEM, through the Agrievolution Alliance, participated in a worldwide survey directed at the senior management of the global agricultural machinery industry. Survey participants were asked about the most relevant topics in their industry, including (but not limited to) the general evaluation of business, order intake, turnover, employment, mood, etc…

Some of the highlights of the survey results include:

  • The Agrievolution business climate index remained unchanged at 41 points in April 2018.
  • Both the current situation and future outlook remained stable, which is positive given the global market place started to slide into uncertainty regarding trade wars.
  • On a global average, 49 percent of the participating agricultural machinery manufacturers regard their situation to be good or better, while only 12 percent describes it as unfavorable.
  • Only 20 percent of the respondents feel positive about the profitability of farming in their home market. Meanwhile, 45 percent feel neutral.
  • Global business climate for agricultural machinery has stabilized on high level. The global industry has good confidence that current growth rates can be maintained. However, further rising growth rates are still in a holding pattern.
  • In the major production regions (Europe, China and the United States), the industry´s confidence has not risen any further, but rather dropped slightly, albeit from high levels.
  • The same phenomenon can be seen in India, and to a lesser degree in Russia and China. The optimism for these latter markets seems to be mainly driven by government support.
  • Despite quite heterogeneous and overall rather mixed ratings with regard to the market conditions, there is again for all global regions (except Oceania) a majority of survey participants expecting market growth in the next six months.

For More Information

The Agrievolution Allliance is a global coalition of agricultural equipment manufacturing organizations that works to advance agricultural interests worldwide through collaborative action on industry issues. The alliance’s economic committee conducts the biannual survey, released in May and November. This edition had 251 participants from Western Europe, India, Japan, South Korea, Brazil, Russia, Turkey and the United States. To sign up for the survey, please contact AEM Market Intelligence Director Benjamin Duyck (bduyck@aem.org, tel:414-298-4154).The public results are available at www.aem.org/market-data/

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