Recent reports from the big three machinery companies, John Deere, Case New Holland, and AGCO, have shown that the Irish machinery market is still thriving despite the current economic climate. In the first quarter, John Deere reported a 32% increase in worldwide net sales and revenues, reaching $12.66 billion. Case New Holland also reported a 15% increase in consolidated revenues, amounting to $5.3 billion. AGCO also had a successful start to the year, with record net sales of $3.3 billion, representing a 24% YoY increase. The reason for this success is attributed to the easing of the supply chain, allowing for more machinery to be completed and sold. Dealers are also restocking their inventories, leading to increased income for manufacturers. However, the full effect of the decrease in milk prices on the tractor factories in Ireland is yet to be felt.
One of the standout factors contributing to John Deere’s success was the performance of its Production and Precision Agriculture sector, which recorded a 55% increase in sales compared to the same time last year. While the price of commodities has eased, it remains strong. AGCO is using the opportunity of its latest earnings call to promote Fendt as its leading brand, with the German tractors being promoted as a quality offering in a way that CNH and John Deere cannot differentiate between ranges. Fendt is being promoted as a full line machinery supplier by AGCO in both South and North America.
Despite the positive news from the big three, the Irish machinery market is still facing challenges. The decrease in milk prices has put pressure on farmers, leading to a decrease in demand for machinery. This has resulted in many manufacturers reducing their workforce and cutting back on investment. However, the recent success of the big three has provided some hope for the industry.
The Irish government has also recognized the importance of the machinery industry and has implemented policies to support its growth. The Capital Investment Scheme, which provides tax relief for companies investing in new equipment, has been extended until 2022. The government has also announced plans to invest €10 million in a new innovation center for the industry, which will focus on research and development.
The Irish machinery market is also looking towards new technologies to drive growth. Precision agriculture, which involves using data and technology to optimize crop yields and reduce waste, is becoming increasingly popular. Companies such as John Deere are investing heavily in this area, with the company’s Production and Precision Agriculture sector recording a 55% increase in sales.
In conclusion, while the Irish machinery market is facing challenges, the recent success of the big three provides some hope for the industry. The government’s support and investment in new technologies such as precision agriculture will also help to drive growth in the future.