SIGNS OF GROWTH
And potential for more?
by Service Dealer Editor, Steve Gibbs
 
Steve Gibbs

The news we're featuring from the AEA today is rather interesting.

 

It turns out they have been provided with some less than accurate information from the DVLA during the course of this year, which has led to some previously published figures regarding the registrations of tractors in 2019 to be revised. In the world of agricultural tractor sales, this year has actually been better than had been previously thought.

 

The figures which we've been given today, now play into the narrative we've been hearing from many of our dealer readers this year, that it's been very much an up and down kind of season. There's been some slow months, interspersed with some periods of quite intense activity.

 

The positive news with this development today though, is that the ag tractor sector is said to be 6.1% up on where it was after 8 months in 2018.

 

Dealers won't be hanging out the bunting and disappearing to the pub early today on the basis of that news of course, but at least there's some solace to be taken in what the AEA's agricultural economist, Stephen Howarth describes as a "..broadly stable market in the first half of this year". Following what many experienced in 2018, this is a definite improvement.

 

This opinion ties in with what dealers were told at the recent Stiga conferences, where md Gary Whitney was describing what's gone on in the domestic market this year as a "season without a punch". Again, some welcome respite.

 

But where might we be heading? To be fair, at the moment if anyone were to be brave enough to predict that with any degree of certainty, they would be taking their reputation in their hands to say the least!

 

However we wouldn't be doing our duty as a journal and a forum for discussion and debate if we didn't ask what our readers and figures in the industry think might happen.

 

To this end, in the next issue of Service Dealer magazine, which we've been putting the finishing touches to this week before it makes its journey to the printers, we have a special feature lined up talking to a couple of senior industry figures who share with us some of their beliefs based on their years' of experience. We hear from representatives of a domestic machinery supplier and a maker of professional and ag machinery.

 

It was very interesting talking to these guys, hearing what they thought might lie in store over the next little while for both their own companies and indeed their dealer networks - the fortunes of both being inextricably linked.

 

In terms of what's to come, both were talking of a desire and a belief in growth ahead. Neither were being over-the-top or bullish in their assessments, I didn't feel. Both to me seemed realistic, yet quietly confident in their outlooks. Each genuinely felt there should be achievable avenues of growth as we move into 2020.

 

The shadow hanging over this of course, is what has beset everyone this year and shows little sign of letting up - the uncertainly around everything. Uncertainty is affecting manufactures, dealers and customers alike. Despite the acknowledged reality of this this though, there still seems to be the belief that across the machinery sectors which our readers deal in, there is potential for growth next year.

 

Interestingly, I read a release from the American trade body, the OPEI, this week, which mirrored in many ways what we've been seeing over here - and perhaps will see in the coming year. They have just issued their autumn quarterly forecast, which predicts a strong finish to 2019 and growth in U.S. shipments of outdoor power equipment in 2020.

 

In a piece which is well worth a read, Kris Kiser, President and CEO of the OPEI is quoted as saying, “Our forecast indicates that 2019 will finish with moderate year-over-year growth in several key segments, and the industry will post more gains in 2020." He cites professional grass cutting machinery and battery equipment as areas where they are seeing particular potential for upswings.

 

Whilst there are marked differences between our two markets, it's always interesting to take note of the situation over there because there are clearly parallels.

 

One would imagine if a degree of steady and stable growth is able to be achieved in our market too, that will have to be considered as an almighty effort under the circumstances.

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In this issue
EDITOR'S BLOG
SIGNS OF GROWTH
NEWS
REVISED TRACTOR REGISTRATION FIGURES SHOW YEARLY IMPROVEMENT
TOP GROUNDCARE TRACTOR BRAND AS VOTED BY PRO END USERS REVEALED
NEW LEADERSHIP FOR T H WHITE AGRICULTURE
BERNHARD OPEN THE BOOKS ON TRAINING COURSES
PREMIER LEAGUE DEAL FOR BALMERS
AUTOMOWER COMPETITION WINNER RECEIVES PRIZE
HIRE SUPPLY COMPANY RELOCATING STOCKS
CLOVER FARM SERVICES APPOINTED AS LINCS FIRST LANDINI DEALER
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