Industry Analysis & Industry Trends
The Tractors and Agricultural Machinery Manufacturing industry has performed well over the past five years due to the economic recovery and above-average performance of the agricultural sector. Favorable interest rates, which were set by the federal government to spark investment, gave farmers incentive to finance new equipment, boosting revenue for industry operators. Furthermore, the industry has been lifted by increased use of technology in farming and rising agricultural investment in the emerging economies of Asia and South America. In the next five years, continued demand for agricultural products will generate demand for industry products, although resulting growth will be tempered by rising interest rates, which will discourage farmers from making capital investments... purchase to read more
Industry Report - Industry Investment Chapter
The manufacturing process requires large amounts of capital in the form of plants and equipment. An indication of the capital intensity required by the industry is given by the ratio of capital costs to labor costs. Using wages as a proxy for labor and depreciation as a proxy for capital, IBISWorld analysis reveals that the Tractors and Agricultural Machinery Manufacturing industry has a medium level of capital intensity. For every dollar spent on labor, $0.14 will be spent on equipment.
Most manufacturing processes involve repetitive actions that may be automated to increase production speed and efficiency. Automated production lines rely upon computer technology and hydraulic robotic equipment to assemble agricultural implements... purchase to read more