Ag Equipment SurveyIt seems equipment manufacturers and dealers are in agreement on their perception of the new Tax Cuts and Job Act, but the same can’t be said for recent trade tariffs imposed by the Trump administration on steel and aluminum.

At least that’s the case according to a survey conducted by AEM and the Equipment Dealers Association (EDA).

The two associations teamed up to solicit and gather valuable insights on their members’ feelings and opinions on tax reform and tariffs, as well as their thoughts on how those developments will affect their businesses, their customers’ businesses, the equipment industry as a whole, and the U.S. economy overall.

The survey identified eight provisions of the new tax code and asked respondents to rank them from most to least beneficial for their company’s respective operations.  Dealers and manufacturers were in consensus that the two most beneficial provisions were:

  • The lower corporate tax rate
  • The favorable expensing provisions for new and used equipment

When asked if there were any troubling components of Tax Cuts and Jobs Act, survey takers uniformly agreed that there were no provisions which they believed were negatively impacting their businesses.

Differing Opinions on Tariffs

However, while manufacturers and dealers are in agreement with respect to their feelings on tax cuts, they differed in their opinions toward the implementation of recent trade tariffs on steel and aluminum.

One significant discrepancy was the opinion on how these tariffs would impact the U.S. economy. Although a substantial number of survey takers stated that while they believe these tariffs will negatively impact the U.S. economy, it appears that a smaller percentage of dealer participants held this sentiment as compared to manufacturer participants. Only 45.5 percent of dealers said that the tariffs would negatively impact the economy, as compared to 61.9 percent of manufacturers who said the same. 

The next EDA/AEM joint survey will be released this summer, and it will cover new and used inventory.

About EDA: 
Founded in 1900, the Equipment Dealers Association (EDA) – formerly known as the North American Equipment Dealers Association (NAEDA) – is a non-profit trade organization that represents approximately 4,500 retail dealerships across the United States and Canada. Our mission at EDA is simple: we are committed to building the best business environment for equipment dealers.

About 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 950 companies, including 450 in the agriculture sector, 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 Washington, D.C.; Ottawa, Canada; and Beijing, China.

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