Sunday, October 29, 2006

AgWeb: Farm Equipment Industry Looking at Slowdown

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This info. on Farm equipment sales slowing has been out for a while with different news sources reporting. My "takeaway points" are;

  • Equipment manufacturer have had a few good years. Pent up demand and some ag. sectors doing well kept the tractor makers growing sales.
  • Ag equipment makers and dealers did a good job adjusting to changing farm needs eg, Larger equipment, dealer consolidation and financial programs. That has helped the industry and bodes well for the future
  • The statement that the Canadian side of the border may have slower sales. Are we doing that much worse? Is the reason ethanol production, better subsidies or our week dollar?
  • There is no mention of poor margins, just slower sales or sales growth. It sounds like the industry thinks it can adjust or weather something slowing down. Are they thinking cycle or short term adjustment as opposed to real bad times for them?