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Tractor, combine sales moving different directions
Farm machinery sales are expected to move up by just under 5% in the coming year, down from last year, but higher than what's seen ahead, according to one industry group.
The Association of Equipment Manufacturers (AEM) this week released sales estimates for the next 3 years, showing a steady decline of sales growth -- at varying intervals -- for the U.S., Canada and the rest of the world. In the U.S., sales are seen climbing by 4.9% this year, then 2.9% in 2013 and 2.8% in 2014. For Canada, growth is pegged at 4.8%, then 2.2% and finally, 1.7% in the next 3 years. As for the rest of the world, sales will go from 5.1% this year to 4.6% by 2014.
Breaking it down by specific iron sectors, the rate of change is expected to stay in growth mode through 2014 in the U.S. and Canada for 2-wheel-drive tractors under 40 horsepower, tractors between 40 and 100 horsepower, air drills, round balers and loaders. In fact, both under-40-horsepower and 40- to 100-horsepower tractor sales look to trend higher for the next 3 years.
On the other hand, AEM expects 100-plus-horsepower tractors, 4-wheel-drive tractors, square balers and combines to see the trend reverse by 2013, with only slightly fewer units expected to sell.