Are tractors and equipment a good investment right now?

[Deleted member 371759]

I worked for a large millwright company for many years. 90% of what we did was remove machines from production lines, put them in giant crates and ship them to China. Manufacturing is never coming back. For one it would take 20 or more years to manufacture and replace machinery that we have exported. For two there are no qualified employees to operate said machines. For three our own government is working against us in a way that discourages any type of productivity by forcing massive carbon reductions. Its a war on the middle class and we lost. Embrace the decline.

 

[2manyrocks]

It's important to remember where we were in the late 1970s with high inflation, high interest rates, and high unemployment. There was a period of painful correction aimed at removing economic inefficiencies and regulatory burdens after which there was some degree of fiscal restraint for a while and we reaped the benefits of those corrections for about 30 years. But the cost of all that has now been forgotten and people that were supposed to know better have taken economic stability for granted and have done some really costly things that will be difficult to correct.

 

[Snobdds]

I worked for a large millwright company for many years. 90% of what we did was remove machines from production lines, put them in giant crates and ship them to China. Manufacturing is never coming back. For one it would take 20 or more years to manufacture and replace machinery that we have exported. For two there are no qualified employees to operate said machines. For three our own government is working against us in a way that discourages any type of productivity by forcing massive carbon reductions. Its a war on the middle class and we lost. Embrace the decline.

We have too high of labor costs to make anything here anymore.

Ford, Chevy, and Stelantis (or what every they are today) is negotiating for higher wages and a shorter work week.

Don't be surprised if automation finds a way to save on labor costs for these companies. Unions actually promotes a faster transition to automation than any other force on labor.

 

[Deleted member 371759]

It's important to remember where we were in the late 1970s with high inflation, high interest rates, and high unemployment. There was a period of painful correction aimed at removing economic inefficiencies and regulatory burdens after which there was some degree of fiscal restraint for a while and we reaped the benefits of those corrections for about 30 years. But the cost of all that has now been forgotten and people that were supposed to know better have taken economic stability for granted and have done some really costly things that will be difficult to correct.

This is nothing like the 70's . Between 1970 and 1980 average household income more than doubled. Between 2012 and 2022 average household income went from 50K to 70K.

 

[2manyrocks]

I agree that today is not the 1970s in so many ways.

 

[Williy]

Last week the gas jumped 30 cents a gallon! must be that
3% inflaction kicked in??????

Pretty soon we will be eating that free rainbow stew and drinking
that free bubble up

willy

 

[5030]

Last week the gas jumped 30 cents a gallon! must be that
3% inflaction kicked in??????

Pretty soon we will be eating that free rainbow stew and drinking
that free bubble up

willy

You ain't seen nothing yet... Chopsticks and raw fish in the future..

 

[newbury]

Over the past year I have been spending a lot on equipment. New tractor, many new implements, also sold some implements anhave made money on all of them. But that was last year and this is this year.

I am noticing used prices coming down to the point I see some ridiculous deals on slightly used stuff. I don't want to deplete my savings so I'm actually thinking of financing a used one. I know rates are garbage but I have a long term plan for my equipment which involves at least one of my sons helping me with it and would need a couple of tractors. If those plans do not work out I could easily sell one.

I'm reluctant to finance anything and I don't want to part with any more cash than I've already spent in the past year. Maybe I just stop looking at FB.

Thoughts?

These times reminds me of 2007-2008. I'm getting ready for a big slide down.
Yander - I'd hold on to "liquid cash", research stuff you know you are going to need/want and be prepared to pounce on deals.
That's what I did in 2007.
Things that happened - The house my wife grew up in in Fulton came up on a short bankruptcy sale - bought it for a third of what it's worth today, paid cash. Bought my (then 2yr old) Kubota B7610/trailer assorted stuff for a killer deal, paid cashier check. Bought our "retirement home/vacation home" and 73 acres in Mississippi which had about 5,000 sq foot of shops with plenty down. Bought enough pallet racking for about 200 linear feet of pallets to line the shop walls. Bought my F350 dually, cash.
By being cash heavy when the market crashed I was able to get a lot of good bargains.
Keep your powder dry.

 

[Yander]

We have too high of labor costs to make anything here anymore.

Ford, Chevy, and Stelantis (or what every they are today) is negotiating for higher wages and a shorter work week.

Don't be surprised if automation finds a way to save on labor costs for these companies. Unions actually promotes a faster transition to automation than any other force on labor.

In the same thought process of automation... I took my Grandkids to McDs the other day. We walked in and there were several kiosks to order from. The kiosks were not functioning correctly, they were not giving receipts or taking your card. So you had order on the kiosk and then go pay at the cashier where you normally would do everything. She didn't even want to take your order, unless your Kiosk messed up, which mine did.

I'm sitting there thinking, every one of your jobs will be automated in a matter of a few years. I think young people today need to be looking down the road 10 - 20 years to think, what jobs will there be? My son worked in retail and I told him, retail is dying and he already knew it. He then got a job managing the entire inventory for that same companies distribution center. I told him, distribution experience will serve you well. We are quickly becoming a distribution economy, not a storefront society.

 

[kthompson]

If buying with selling it is of strong concern, WATCH THE BRAND in any product. Certain brands of knifes can increase in value and others worth nothing but a better quality product. In collecting brand name is very important.