sd455dan
Elite Member
- Joined
- Oct 23, 2012
- Messages
- 4,768
- Location
- North Idaho
- Tractor
- Rhino 554, Ford 550 TLB (JD X500, MTD, Gilson riding mowers) Ford 3000-Sold
"for every 1 Korean tractor, there were 500 JD or Kubota tractors sold"
That is not even close to correct, not anymore anyway.
Neil from Messack's did a Youtube video not too long ago where he let slip a bombshell statistic that between JD and Kubota combined, they only hold 65-75% of the US market share (in the up to 50 hp market). You may think that is huge, but it used to be MUCH greater, 80-90% just a few decades prior. So the "big guys" are losing market share at a fairly significant rate.
He also stated in this video, that there are now 10 times more small tractors (up to 50 hp) sold new in the market than there are large Ag tractors. So the CUT/SCUT market is pretty big in general.
I personally think that drop in market share will continue at the same rate, as the "Big 2" are just ripe for the taking. At least around here, their dealers act like they are too big to fail and that customers are lucky to have them and owe them their allegiance. Much like IH's market attitude in the 60's and 70's.
Much of your concern about dealer and service support is quite valid. Some brands and dealers come and go like a fart in a skillet. Some get bought out (Branson's parent company, Kukje, was bought by TYM and their product line was folded into the TYM product line, for example). And some disappear entirely. In my case, my dealer is long gone. There are still TYM dealers (some are former Branson dealers, and some are not) around, but the only one in my state now is over 4 hrs away, which may as well be on the moon to be any good to me. TYM is trying to get more market share and open more dealers around the country, but it seems a slow process.
But it would take a company with the long term fortitude to survive and make deep inroads into the US market to really penetrate well. Think of what Kubota went through in the 60's and 70's in order to penetrate the US market. Once derided and vilified by the "Big 2" of the day (JD and IH), they are now firmly entrenched as a market mainstay.
Maybe another company will come along and do the same? Maybe TYM (with a ton of money to spend), but maybe not. It will take a long term philosophy to weather that storm that most corp's (especially US ones) no longer have. A "Day Trader" investment attitude will never get it there. It would take a major investment and the fortitude to weather the losses for a decade or more to make something like that happen.
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Saw this a couple days ago about the way JD terminated some of it's it's US workers and recalled a lot of the low tier D105 riding mowers that had the ill fated plastic transaxles but did nothing for people who got fed up and traded or just sold them for parts. Black Rock buying 17 million shares of JD is not helping Product or Company Loyalty.
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