Decreasing CUT sales?

[radman1]

I'm in the market to upgrade my Kubota CUT. I have actually been a member of tractorbynet for many years but hadn't posted for a while, moved, changed e-mail, and had to start new member name. I have known my Bobcat/Kubota dealer for several years and was discussing upgrading. He had relatively few Kubota's on site to look at. He said Kubota will be changing some lines of tractors this fall and is letting his inventory decrease. He also said his sales of Bobcat and Kubota is about half of last year. Mostly attributed to downturn in construction/new homes. Fewer guys buying. Has anyone else noticed or heard of such a dramatic trend. CUT sales in the past have been very good but is there a downturn? JD and others have been running 0% financing for several months and JD just continued to end of Oct. This would suggest slow sales.

 

[Keith_B]

Looks like if sales are decreasing it is good for CUT buyers. Lots of tractors and slower sales means that dealers should be more willing to deal, especially in the older model years that are new and still sitting on the lots.

 

[knute_m]

I really think it depends on where you live.

Through the community service groups that I'm involved in, I see several tractor dealers on a fairly regular basis. In this area (Northern Virginia, northern West Virginia, Western Maryland, and Southern PA,) those selling CUTs and SUBCUTs are doing quite well. Farm tractors and general farm equipment are just not selling as well as they had been in the past couple of years.

The people I see are not in the business of skid steers, dozers, etc.

But, if I was in the equipment business, I sure wouldn't mind being in the business of selling tractors under 40 hp, and associated implements for land owners.

Knute

 

[JerryG]

Tractors under 40 hp sales are down 1% over the last year. Tractors 40 hp to 100 hp are up 3.1 %. These numbers are through June 2006.

 

[radman1]

Using JerryG's down 1% for under 40hp, it might also be there are more smaller companies taking some of the bigger companies share. The Montana's, Mahindra, Kioti etc taking from the larger? It may also be big companies like JD may have based production on continued increasing sales and now have relatively overproduced. 1% drop doesn't seem like much unless you had planned on a 7-10% increase.

 

[JerryG]

The number for 40hp and under was down 14.1 % June 05 - June 06. This summer is where the problem is.

 

[radman1]

JerryG
Down 14.1% in past 12 months is surprising. No wonder the 0% financing. With fall and winter approaching the sales may get worse. The economy doesn't seemed to have worsened that much. Any reasons why the decrease?

 

[SacandagaBrad]

Not sure about the new unit sales, but on a related note I have noticed a lot more used machines available in the want ads. When I researched my TC-24D 3 years ago, you couldn't touch one used, either private deal or at the dealers. Lately I've noticed anywhere from 10 to 15 machines in the 15 hp to 40 hp range available in our local want ad digest at any one time. Wonder if it is a sign that many who bought a few years ago are now done with their projects or just never really needed one in the first place.

Mine is not for sale!!! Wouldn't and couldn't part with it.

 

[DavesTractor]

JerryG
Down 14.1% in past 12 months is surprising. No wonder the 0% financing. With fall and winter approaching the sales may get worse. The economy doesn't seemed to have worsened that much. Any reasons why the decrease?

I think he meant June 2006 was down 14.1% compared to June 2005?

 

[JerryG]

Yes, that is what I meant. Sorry if it didn't come out that way.

I think he meant June 2006 was down 14.1% compared to June 2005?