For three months in a row, new machinery sales have maintained above 2017 year-to-date levels. Also with its August sales report, the Association of Equipment Manufacturers (AEM) reports all machinery categories reported are up August 2018 compared with the same month in 2017.
Comparing August 2018 to August 2017:
- Combine sales were up 23.4%
- Four-wheel-drive tractor sales were up 16.7%
- Total two-wheel-drive tractor sales were up 14.4%
For the past six months, total machinery sales have trended above the five-year-average according to AEM. Here is link to the full report online.
“While we’re pleased with these positive numbers, we still face concerns. For example, we have a potential rewrite of NAFTA added to steel and aluminum tariffs, and the USDA recently predicted a double-digit decline in net farm income,” said Curt Blades, AEM senior vice president of ag services said in a press release. “We’re continuing to push for trade action that does not harm farmers or equipment manufacturers as well as a timely passage of a farm bill to help bring some certainty to the marketplace.”
The tariffs are already affecting both new and used equipment sales according to another survey.
As another indicator of machinery supply and demand, AEM and the Equipment Dealers Association (EDA) have been surveying their respective memberships to see how their perceptions of dealer inventories—new and used--compare. The 2018 survey (conducted this past summer) was the third year for this data.