|
 |
|
|
|||
|
 |
|
May 29, 2024 Source: Association of Equipment Manufacturers (AEM) The short-term outlooks for equipment manufacturing and the agriculture and construction customers they serve remain somewhat uncertain, but slow growth is on the horizon, according to data presented at AEM's Q2 Equipment Market Outlook Webinar. While supply chain disruptions stemming from the COVID-19 pandemic and global conflicts have inhibited growth in recent years, there are some bright points for both the ag and construction markets. The North American construction market should remain more subdued in 2024 when compared to 2023, in terms of total industry growth, through a few markets will see growth. On the ag side, lower commodity prices, high storage and farm input costs contributed to lower margins for farmers. In addition, elevated ag equipment prices and loss of U.S. market share in the global market signal a slowing demand for farm machinery and related attachments and components. However, with inflation no longer on the rise and supply-driven pricing pressures easing, the consensus opinion, as reflected in AEM's most recent Industry Condition Survey, is that economic recovery of the industry and its supply chain is much closer than previously expected. With that in mind, here are some more takeaways from AEM's recently held webinar, which featured expert perspectives from AEM Senior Director of Business intelligence Al Melhim and Tom Hogood, economist, Construction at GlobalData: AG *There is an overall sense of pessimism for ag equipment demand growth amongst AEM members who completed our most recent survey. *Inventory levels are rising for both manufacturers and dealers. *Irrigation and sprayers, loaders and material handlers, and trailers and transportation equipment are seeing rising levels of demand, while equipment for soil working, seeding, fertilizing, and plant protection are seeing decreasing levels of demand. *Excess supply of major ag commodities, sticky input prices, dwindling government support, and struggling exports all resulted in the steepest drop in net farm income, a major predictor of farm equipment demand. Year-to-date sales of ag equipment are lower year-over-year, marking, conceivably, a second consecutive year of lower demand. To read the entire report click here. Tweet |
|
|
|
|
|
|
|
|
|||||||||||||
