Keepin' it rural: Rising interest rates will limit long-term industry growth

While industry products are ubiquitous on farms, revenue remains exposed to volatility of farm income, which affects farm demand for new equipment and consequently affects industry revenue. Industry operators experienced early revenue boosts as rising agricultural commodity prices, such as feed, increased farm incomes over years leading up to 2013; however, recent sharp price declines reversed farm income trends and reduced sales. Despite declining commodity prices, low interest rates gave room for increased borrowing and industry revenue experienced an increase in 2016 and 2017. However, declining feed prices are likely to hamper downstream demand in 2018. Over the next five years, the industry is not expected to grow...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
-1.3%
Forecast Growth 18-23
Profit
Employment
14,191
Businesses
472

Industry Threats & Opportunities

  • While industry products are ubiquitous on farms, revenue remains exposed to the farm income
  • Despite an appreciating US dollar, imports and exports moved in contradictory directions
  • Higher interest rates are expected to hinder the growth of industry revenue
  • Industry Report - Industry Key Buyers Chapter

    The Tractors and Agricultural Machinery Manufacturing industry in Canada exhibits a medium level of concentration, with the two largest players accounting only an estimated 24.7% of industry revenue. A high level of research and development, large economies of scale, extensive dealer networks and longstanding reputations make it difficult for new players to compete with the major operators. However, a large portion of the consolidation in the industry has occurred with international companies. While John Deere is one of the largest agricultural implement manufacturers in the world, it only maintains three manufacturing locations in Canada and none of them make industry products. Mor...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

  • Effective quality control
  • Research and development
  • Guaranteed supply of key inputs
  • IBISWorld analysts also discuss how external factors such as Price of feed and Demand from crop production 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?

    This industry manufactures agricultural machinery and equipment and powered home lawn and garden equipment. Agricultural equipment includes tractors, harvesting and seeding machinery and other machinery, such as grinders, mixers, wool presses and windmills.

    Industry Products
  • Tractors and attachments
  • Consumer lawn, garden and snow equipment and parts
  • Harvesting machinery
  • Dairy equipment
  • Planting, seeding and fertilizing equipment
  • All other equipment
  • Industry Activities
  • Manufacturing farm tractors and attachments
  • Manufacturing harvesting equipment and machinery
  • Manufacturing irrigation equipment
  • Manufacturing seeders
  • Manufacturing sprayers and spreaders
  • 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
  • Price of feed
  • Demand from crop production
  • Overnight rate
  • Canadian-dollar effective exchange rate index

  • Current Performance
  • Technology and productivity
  • International trade
  • Domestic demand and interest rates
  • Chart: Revenue Growth

  • Industry Outlook
  • Domestic conditions
  • Emerging economies and trade
  • Technology change
  • 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 in Canada
  • Corn Farming in Canada
  • Vegetable Farming in Canada
  • Beef Cattle Production in Canada
  • Farm, Lawn & Garden Equipment Wholesaling in Canada
  • Farm Supplies Wholesaling in Canada

  • Key Selling Industries
  • Engine & Turbine Manufacturing in Canada
  • Iron & Steel Manufacturing in Canada
  • Metal Stamping & Forging in Canada
  • Steel Rolling & Drawing in Canada

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

  • Demand Determinants
    Major Markets
  • Exports
  • Wholesalers
  • Retail outlets
  • 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
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Tractors & Agricultural Machinery Manufacturing

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

  • Industry Globalization
    CNH Industrial NV, Buhler Industries Inc.,
  • Table: CNH Industrial NV - financial performance
  • Table: Buhler Industries Inc. - 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)
  • Price of Feed Index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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 ploughing, ripping or turning it.
  • What Our Customers Say

    Why buy this report?

    The Tractors & Agricultural Machinery Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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