Ag equipment manufacturers foresee growth
A survey of agricultural machinery manufacturers indicates they are predicting their overall U.S. business to close out 2010 with 2.4-percent sales growth, then gain 3.7 percent in 2011 and 2.4 percent in 2012, followed by 2013 growth of 3.0 percent.
The agriculture equipment “business outlook” survey was conducted by the Milwaukee-based Association of Equipment Manufacturers (AEM).
The survey asked respondents to rank how several factors would influence sales. Positive commodity prices were a key factor, as well as strong export sales. Credit availability to finance purchases remains a concern, as are steel prices.
"While there has been a recession, agriculture has been fortunate to have powered through, showing positive signs in most areas. I emphasize most, because some have struggled along with other economic sectors. Those serving consumers more directly and those in the dairy industry coping with volatile milk prices have certainly faced difficulties. But for the most part, agriculture has remained in good shape," said Charlie O’Brien, vice presiden of the agricultural sector at AEM.
"Equipment sales are not back up to pre-recession levels, but customers are purchasing equipment because of the optimism," O’Brien said of farmers who raise commodities such as corn, soybeans, wheat and rice. "There continues to be good demand for these commodities."
O’Brien emphasized that export sales have been a bright spot for U.S. companies, helping to create and support jobs for American workers. "Especially in the current economy, Congress needs to help our farmers and manufacturers by acting on export agreements such as the ones with Korea, Colombia and Panama," he said.
