Firstly today, all at Service Dealer would like to convey our condolences to the family, friends and colleagues of Paul Reeves, md of Malpas Tractors, whose passing we must sadly report in today's news. 

Elsewhere, we have more market information from the AEA that, unfortunately, does not make the best reading.

The Association has confirmed that UK agricultural tractor registrations continue to track below last year's levels, with July's total of 948 machines being 14% lower than what was seen in 2023. They go on to explain that the total of 6,830 tractors registered in the year so far is 10% below the five-year average for the opening seven months of the year.
 

This less than brilliant news follows on from what they told us a couple of weeks ago, when their analysis revealed that tractor sales have declined in all areas of the UK during 2024.

As well as this statistical analysis to illustrate what conditions are like out there at the moment for ag machinery dealers, in our news pages we have reported several dealerships who serve the farming sector closing their doors for good these past few months - most recently, MKM Agriculture deciding to shut their branch in Bury St Edmunds. Managing director Anthony Deacon told us last week that this was due in large part to "economic challenges and online competition".

I spoke to Service Dealer's agricultural machinery editor, Martin Rickatson, to hear his take on the current situation. He told me, "Things are definitely a bit tough in ag at the moment - and it’s probably having a knock-on effect in associated industries like forestry."

Martin was keen to point out though, that these conditions do not seem to be unique to us this year. He said, "Dealers might be interested to know that this downturn is not just a UK thing. We are hearing reports of just how downbeat things are in ag machinery around the world."

An article in U.S trade journal Farm Equipment this week for example, quotes a manufacturer as saying the ag industry, ". . . is on the fastest roller coaster ride down in a quarter-century." The piece continues with four reasons why this individual has increased concerns, "beyond what’s normal in an election year." It's well worth a read.

This story follows the news out of the States a couple of weeks ago that John Deere has made some significant redundancies amongst its salaried employees. You can read the American site, AgWeb's interview with Cory Reed, president of the company's Worldwide Agriculture & Turf Division here - who discusses what he sees as the current challenges in the ag economy.

Elsewhere in Europe, the Italian equivalent to the AEA, the FederUnacoma, recently published a report saying how their domestic market for all types of agricultural machinery has continued to decline in sales compared to the same period in 2023.

How is your dealership coping?

Reading articles like these certainly gives the impression that there's a global downward trend in the agricultural machinery sector in 2024.

This prompts the question for our UK dealer readers serving the ag sector, does it offer any solace to know that your contemporaries in other countries are finding times just as tough? Perhaps knowing that your business isn't doing anything inherently wrong might be some comfort if you're feeling the pinch? Although that comfort is likely to be of the cold variety, if wages and bills are struggling to be paid! 

And looking beyond agriculture, do our domestic and commercial turfcare machinery dealer readers feel circumstances are similar for your businesses this year? It's harder to keep tabs on these sectors because the industry does not receive monthly updates on sales figures from a trade body, similar to how we do from the AEA regarding ag tractors. For these markets we're reliant on more anecdotal accounts to gauge the rough temperature of how it's going from our dealer readers. And by that yardstick, the word I keep hearing repeated is 'busy'!

So how are all our dealer readers feeling? With the odd weather patterns, cost of living, change of government, major summer sporting distractions etc, - is a downturn in sales obvious to you this year?

And if so, does the knowledge that it is - in agriculture at least - a worldwide phenomenon, ease how you feel about it?

Let us know in the comments below.