Industry Analysis & Industry Trends
During the five years to 2014, the Tractors and Agricultural Machinery Manufacturing industry's involvement in trade has increased growth following recessionary declines. However, crop prices are expected to fall slightly, decreasing income for farmers and providing less money for equipment upgrades, which results in a decrease of revenue over the period. Over the five years to 2019, the improving economic conditions and rising farm income is expected to lead to increasing demand for agricultural equipment. Additionally, strong global demand and rising productivity in the emerging markets will increase revenue growth... 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