Sep 18, 2014
Home| Tools| Events| Blogs| Discussions| Sign UpLogin

CornCollegeBanner home


Machinery Journal

RSS By: Aimee Cope, Farm Journal

The Machinery Journal blog is your place to find the latest machinery updates, industry news, and interesting tid bits.

Ripple effect in machinery industry

Jun 26, 2008
As energy, raw materials and transportation costs rise, manufacturers buckle down on production and bump up prices.
 
On Monday, June 23 iron ore set a record with its rise in price. A fluctuations in the expense of steel has always played a role in machinery prices, but some say this recent event is short-term whereas other indicate it may have a longer perspective.
 
In its recent quarterly report, John Deere said material costs and freight are up $60 million in Q2 2008 compared to Q2 2007.
 
CNH will implement a 5% surcharge (across the board) on all whole goods orders.
 
AGCO raised its prices in Q1 of 2008, and it has been said the company is considering the price of steel and future price compensations for that expense.
 
And it’s not just farm equipment. Pick up trucks are also bearing the load of more costly materials. However, compared to combines and tractors, truck demand is decreasing.  
 
GM will slash its build of 2009 trucks by 170,000. The company will also institute a 3-5% price increase in response to the market factors.
 
As previously announced, Ford is decreasing its F-150 totals for 2009.
 
And Nissan has its eye on increasing truck prices 2-3%.
Log In or Sign Up to comment

COMMENTS

No comments have been posted, be the first one to comment.

Hot Links & Cool Tools

    •  
    •  
    •  
    •  
    •  
    •  

facebook twitter youtube View More>>
 
 
 
 
The Home Page of Agriculture
© 2014 Farm Journal, Inc. All Rights Reserved|Web site design and development by AmericanEagle.com|Site Map|Privacy Policy|Terms & Conditions