How hot is the CUT competition getting these days?

[canoetrpr]

Picked up a magazine today and saw an ad for a Cub Cadet / Yanmar CUT - 32 HP.

Here is a link to the particular product.

Just got me thinking... seems like the major brands (Kubota, Deere, NH) are getting a number of worthy competitors hungry for a piece of their market share. Kioti's got a great following, Bobcat's getting into it with the Kiotis, and Mahindra and now Cub Cadet / Yanmar.

In times past competitors have come and gone and the big three have remained.

Do those of you that have seen other brands come and go over the years see (or not see) something different with the current stream of what seems to be worthy competition, than it has been with brands that have gone in the past?

Given my short experience following CUTs, it appears to me that the big three are going to experience a sizable drop in new market share in the coming years. Consumers should benefit as increased competition generally results in lower prices. I'd also like to hear opinions from those that have watched this for a much longer time and seen new and exiting brands come and go.

 

[RoyJackson]

Interesting question!

I think it'll stay pretty strong...but more for businesses: Landscapers, construction, vineyards...things of that nature.
I can see the residential market getting saturated and companies leaving or abandoning that market, especially for the mid sized tractors.
However, I see the subCUT market staying strong for a long time to come. There are a lot more ½ to 1 acre lots around (which a SubCUT is well suited for) then larger properties.

I think that Club Cadet/Yanmar has a lot of potential...more so in the business end of things. Club Cadet has been around for a long time...but one doesn't see many of them. Not around this area, anyway.

 

[jbrumberg]

I agree with Roy:

Another additional benefit will be as competition increases the various manufacturors will focus more on tractor ergonomics and other "bells and whistles" in order to maintain and/or increase sales . Jay

 

[RoyJackson]

I agree with Roy:

Another additional benefit will be as competition increases the various manufacturors will focus more on tractor ergonomics and other "bells and whistles" in order to maintain and/or increase sales . Jay

I actually think a lot of the "Bells and Whistles" could be phased out on the midsized and larger CUTs since the market (light construction, landscapers, small farmettes) won't want to pay for them. I do see hydro trannies being stronger due to ease of operation and multiple operators.

I wouldn't be surprised to see Deere abandon this market, ultimately...especially for the residential buyers. I believe their corporate mentality is directed toward larger ag equipment.

Just my opinion...

 

[jbrumberg]

Roy:

I agree with the increased manufacturing and marketing of HST's for the reasons stated. You are probably right about the mid and large size CUT's and the "bells and whistles" (unless demand increases due those "show and blow" type owners who "need" the latest gimmick and most powerful upgrades in order to keep up with their neighbors when they trade up. Owners who really use their tractors are not as concerned about the "B's & W's" IMHO.). I do hope that the tractor manufacturors continue to focus on ergonomics. The current trend among manufacturors appears to be a focus on tweaking the most HP out of their existing product lines. Hopefully we'll be around to see what happens ! Jay

 

[knute_m]

Do those of you that have seen other brands come and go over the years see (or not see) something different with the current stream of what seems to be worthy competition, than it has been with brands that have gone in the past?

I'm not sure it has really changed significantly over the years. The tractors get a little better, but they have not really changed much in the last 30 years.

I believe about a quater-million Farmall Cubs were built from the late '40s into the 60s. As I recall, they were about 10 HP. And how many low HP Deeres were built. I had an H, that I think was about 14 HP. About 60,000 of these were built. Tens of thousands of other small Deeres were built.

Small diesels and four wheel drive came in the 70s and early 80s. Then came afforadable small loaders. All that made a big difference. I can't think of any of these small diesels that were built in the US. But, unless they were grey market, all but Kubota had old-time North American names. All were built overseas, mostly in Japan, by Yanmar (Deere), Hinomoto (Allis Chalmers, Massey), Mitubishi (Cub Cadet -- now Mahindra), and the list goes on and on.

The small diesels of the 1980s are not much different than those made today. They have a little more leg room.

I just think the market may be a little bigger, but mostly because the population of North American has gotten quite a bit bigger. And, a lot of the big farms have become much smaller hobby farms.

 

[canoetrpr]

Roy - I thought I liked your new sig but then I realised that it was telling me that my hydrostat and horizontal exhaust on my L3400 was symbolic of a "girlie" man!.

 

[canoetrpr]

I wouldn't be surprised to see Deere abandon this market, ultimately...especially for the residential buyers. I believe their corporate mentality is directed toward larger ag equipment.

Interesting thought.

Are you referring to the 3x20 class machines or more the 4x20 class machines?

The 3x20 class machines seem to have a lot of users right across the spectrum - landscapers, commercial snow clearing along with hobby farm types like me. Really can't see them dropping this line of tractors - seem like first class machines that fit a vast array of buyers needs.

On the 4x20... I like the machines but I think that I would be drawn more to the 5xxx series if I needed a larger tractor to do things like power a baler etc. Lots of bang for the buck on the 5xxx series so it seems to me.

 

[RoyJackson]

Interesting thought.

Are you referring to the 3x20 class machines or more the 4x20 class machines?

My opinion...all of the mid sized and large frame CUTs. I'd guess the market would go to Kubota, maybe Kioti, maybe Club Cadet. These are the companies that would inherit the commercial market for CUTs.
The 3xxx series would go first as the 4xxx series could be used in smaller ag applications. Also, the 3xxx series tractors use Yanmar engines and the 4xxx series use Deere engines.
The subCUTs may still be sold...for the reasons I wrote in my first post. And Deere is strong in the lawn tractor business.

I'd guess New Holland would go the same direction as Deere.

Now...that's if the market goes the way I expect it to go over the next 10 years... I just expect the small estate market to get smaller.

 

[gamble77]

Deere knows their growth is in the Cut and under market...the AG market will continue to shrink...they will not in way be getting out of the Cut market.