Taking root: Reviving demand will encourage revenue growth after a period of decline

The Tractors and Agricultural Machinery Manufacturing industry has experienced a wholesale decline in revenue over the five years to 2018. Favorable interest rates, kept low by the Federal Reserve to support investment, incentivized farmers to finance new equipment at the outset of the period. Sharp declines in agricultural product prices and currency headwinds have contributed to lower revenue for farmers, leading them to reduce purchases of industry products. The industry relies on trade on two fronts. Firstly, the primary end market for industry goods is farmers, which are exposed to fluctuating exchange rates and global food demand. Secondly, exports have historically accounted for more than one-quarter of revenue...purchase to read more.

Industry Statistics & Market Size
Revenue
$37bn
Annual Growth 13-18
-6.4%
Forecast Growth 18-23
Profit
Employment
74,143
Businesses
1,275

Industry Threats & Opportunities

  • Currency headwinds and reduced demand for agricultural equipment affect performance
  • Manufacturers are offering more fuel-efficient products to meet new emissions standards
  • Technological innovations in agricultural equipment will improve future farm productivity
  • Industry Report - Industry Key Buyers Chapter

    The Tractors and Agricultural Machinery Manufacturing industry exhibits a moderate level of concentration. The industry is estimated to contain 1,186 companies, but the top four generate an expected 61.5% of revenue. The number of companies in the industry is expected it decline over the five-year period. Lower profit margins have made the industry less attractive to new entrants and has forced smaller companies to exit. Over the period, there has been an increasing level of research and development by the largest manufacturers. This signals an attempt to increasingly garner market share by making smaller companies' products noncompetitive. Additionally, there have been several large mergers in the industry space, as well as acquisitions to build out product portfolios. Des...purchase to read more.

    Additional Insights for the Tractors & Agricultural Machinery Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tractors & Agricultural Machinery Manufacturing Industry are

  • Meeting emissions standards
  • Adopting new technology
  • Effective quality control
  • IBISWorld analysts also discuss how external factors such as Agricultural price index and Prime rate in the Tractors & Agricultural Machinery Manufacturing industry impact industry performance..

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    What's in this report

    What is the Tractors & Agricultural Machinery Manufacturing Industry?

    Industry operators manufacture agricultural machinery and equipment, in addition to powered lawn and garden equipment for homes. Key agricultural equipment includes tractors, harvesting and seeding machinery, grinders, mixers, wool presses, windmills and other hardware.

    Industry Products
  • Tractors and attachments
  • Harvesting machinery
  • Consumer lawn, garden and snow equipment and parts
  • Dairy farm equipment
  • Planting, seeding and fertilizing machinery
  • Industry Activities
  • Manufacturing farm tractors and attachments
  • Manufacturing harvesting equipment and machinery
  • Manufacturing irrigation equipment
  • Manufacturing seeders
  • Manufacturing sprayers and spreaders
  • Manufacturing windmills
  • Manufacturing powered agricultural mowers
  • Manufacturing livestock feeding and watering equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Agricultural price index
  • Prime rate
  • Trade-weighted index
  • Private investment in computers and software

  • Current Performance
  • Downstream demand
  • Technological change
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Growing productivity
  • Trade conditions
  • Profitability and consolidation
  • Table: Tractors & Agricultural Machinery Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tractors & Agricultural Machinery Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Soybean Farming
  • Corn Farming
  • Beef Cattle Production
  • Crop Services
  • Industrial Equipment Rental & Leasing

  • Key Selling Industries
  • Engine & Turbine Manufacturing
  • Metal Stamping & Forging
  • Miscellaneous Product Manufacturing
  • Steel Rolling & Drawing
  • Tire Manufacturing

  • Products & Services
  • Other
  • Tractors and attachments
  • Consumer lawn, garden and snow equipment and parts
  • Harvesting machinery
  • Dairy farm equipment
  • Planting, seeding and fertilizing machinery
  • Chart: Tractors & Agricultural Machinery Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Availability of credit
  • Downstream activity
  • Replacement demand
  • Seasonality

  • Major Markets
  • Distributors and wholesalers
  • Exports
  • Home centers
  • Outdoor power equipment stores
  • Hardware stores
  • Chart: Major Market Segmentation for the Tractors & Agricultural Machinery Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Tractors & Agricultural Machinery Manufacturing

  • Basis of Competition
  • Products
  • Efficiencies
  • Customer service
  • Importance of brand names

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tractors & Agricultural Machinery Manufacturing Industry

  • Industry Globalization
    Deere & Company, CNH Industrial NV, AGCO Corporation,
  • Table: Deere & Company - financial performance
  • Table: CNH Industrial NV - financial performance
  • Table: AGCO Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tractors & Agricultural Machinery Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Tractors & Agricultural Machinery Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Agricultural price index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Combine
  • A harvesting machine that heads, threshes and cleans grain while moving over a field.
  • Seeder
  • An agricultural device used to plant seeds in well-spaced rows at specific depths and rates.
  • Tillage
  • The agricultural preparation of the soil by plowing, ripping or turning it.
  • Windrow
  • A row of hay or grain raked up to dry before being rolled or pitched into cocks.
  • Windrower
  • A curved device attached to the rear of a mowing machine's cutter bar for use on windrow.
  • What Our Customers Say

    Why buy this report?

    The Tractors & Agricultural Machinery Manufacturing industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tractors & Agricultural Machinery Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tractors & Agricultural Machinery Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tractors & Agricultural Machinery Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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