Supply and demand for ag equipment up as supply chain challenges ease
An executive with the Association of Equipment Manufacturers says ag equipment supplies are finally catching up with demand following years of supply chain issues caused by the COVID-19 pandemic, labor shortages and steel and aluminum prices.
Senior Vice President Curt Blades tells Brownfield that is reflected in their recent sales reports.
“Combines have been on fire this past year. In fact, we’re up over 50% year over year for combine sales. We’re approaching 30% year over year increases in articulated 4-wheel drive.” Blades says there is some softness in sales for tractors under 100 horsepower.
He says there is a lot of optimism in the industry moving forward.
“We look at farmers wanting to adopt new technology and bring that technology into their farming operation, along with a relatively strong farm economy, certainly when you look 5 and 10 years out. Those things drive demand for farmers to buy new pieces of equipment.”
He says the overall tractor fleet is about as old as it has ever been, so an active replacement market is also driving demand.
Audio: Interview with Curt Blades during the 2023 Farm Progress Show