When scarcity is an issue, usually that means more and faster sales. However, the longer those supplies stay low, the worse effect it has on the marketplace. Soon, there aren?t any options left and then sales dip off.
That is what has happened to the tractor and combine markets. The lack of new units and backlogs in the supply chain are leaving dealers with nothing to sell in many locations.
Curt Blades is Senior Vice President of Industry Sectors and Product Leadership at the Association of Equipment Manufacturers (AEM). He says that sales of tractors dropped by over 21% in March and Combines were down over 10%. However, sales remain above the five-year average.
Sales on both implements had been good since mid-2020 when we first started to see supply chain issues. But continued lower inventories have worn out their welcome.
Another challenge is keeping parts in stock. Many manufacturers are doing all they can to keep those readily available as spring planting nears.
Blades says that if farmers are wanting to make upgrades, they need to prepare to plan ahead and wait.
