Farm machinery sales is but one of many barometers to gauge the health of the agriculture industry, but it’s one that Agriculture Equipment Manufacturers (AEM) pays attention to closely.
The good news? Agricultural machinery industry sales appear to have stabilized. The not-so-good-news? Global sales are expected to stay at their current relatively low levels for at least another six months, according to AEM director of market intelligence Benjamin Duyck.
“It appears that in the near future, the industry will remain soft, mainly due to deterioration in the Americas as well as Western Europe,” he says. “On a more positive note, when we look at data from East Asia, Africa and the Middle East, they have stronger industry expectations for the future.”
AEM’s Agrievolution Business Barometer has been conducted every April and October since 2010. The index peaked in April 2011 and bottomed out in October 2014. The expectations today are mixed – 30% of manufacturers expect business to decrease in the next six months, 38% predict unchanged sales and 32% expect sales to grow.
The survey also asked manufacturers about their current business confidence. Of those, only 4% answered very good, with 19% good, 39% satisfying, 34% unfavorable and 4% very unfavorable. The United States had the highest percentage of unfavorable and highly unfavorable ratings.
For more information, visit www.aem.org/market-data/.