Compact Tractor Sales Down 15%

HayDR · May 12, 2005

AEM April Sales The weather might be the cause of the lower sales. From Kansas to NC in the center of the USA the weather has been unseasonable cold and or dry. This is the 3rd month in a row compact tractor sales have been down. It looks like the industry will go bach to the 90,000-105,000 per year level. The 2004 sales were 130,000 compact tractors sold. If this happens all in one year some brands will be in big financial trouble.

Utility tractor sales are hot. These utility tractor sales are being driven by high calf prices from the cow/calf farmer.

JD consumer lawn mower sales are off 20% but "Zero Turn" mowers industry wide are red hot.

frank_f15 · May 12, 2005

QUITE INTERESTING! to what do you attribute this to? The only thing i can see from it is perhaps people looking to buy might get a better deal as dealers scramble to sell unit, BUT I DOUBT IT..

riptides · May 12, 2005

What about market saturation?

Most everyone I know has a tractor, and with the longevity of the product they are not interested in buying for many years?

Development in my area has also turned to the ZTR as the must have machine for the homeowner. The large lot days are just about gone around me....

-Mike Z. /forums/images/graemlins/grin.gif

gmsssi · May 12, 2005

Wouldn't know it by the prices!

Maka · May 12, 2005

We have not seen it here but since Nov. it has been like spring and that is very unusual. The other thing is that here we have wide open land that is relativelly inexpensive so people are retiring in droves and once they get their 5, 10 or 20 acres they need a tractor.

We will probably feel it as well with time.

Maka

MessickFarmEqu · May 12, 2005

I would not say we are down so much, but there has been a clear swing towards the larger units. Subcompacts are probably down 50% for us.

BillG_in_TX · May 12, 2005

Doesn't that chart say that 2WD "Ag" tractors under 40HP are down 7% YTD?
And that only 1,400 4WD tractors (all HP ranges) were sold, compared to 36,000+ 2WD under 40HP?

What exactly is this telling us? I don't think this is addressing the CUT market.

HayDR · May 12, 2005

4WD tractors are defined as tractors that have the same size tires in both the front and rear. Current inventory numbers are up so we know it is not a supply side influence causing this sales down turn. April has been the watermark for the compact tractor sales for yearly sales totals for the last 10 years. We are in a softer market for 2005. Every MFG will reduce production figures on their compacts for the USA market. The MFG's know that sales fall off after July and so do the cash flows of dealers.

froggy · May 12, 2005

<font color="blue"> The MFG's know that sales fall off after July and so do the cash flows of dealers.
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Seems like that would be the best time to buy.

HayDR · May 13, 2005

The best time to purchase is when inventory is high and sales are in decline. In 3 months the MFG's and Dealers will have adjusted their inventory levels. NOW is the best time to purchase while inventory is high.