The general Business Climate Index for the Agricultural Machinery Industry in Europe has reached its peak in the months of May and June (with highest levels since 2008). In November, the index dropped again for the fifth month in a row from high level (to 50 points on a scale of –100 to +100). The decline was particularly significant with regard to the expectations for the coming 6 months, thereby most likely not due to developments on the market side, but rather on the production and supply side.
The volume of orders corresponds currently to a production period of 5.9 months, which is another all-time high ever recorded within this survey - and despite order books at record levels, the manufacturers continue to be faced with a very dynamic order intake. At the same time, the uncertainty increases as to what extent the orders can be realized by the manufacturers against the backdrop of extreme price increases and severe shortages on the supplier side. Meanwhile, 53% of the companies expect a production stop due to a lack of certain parts in the coming month. Even more critical appears the situation for combine harvester and tractor manufacturers, where three out of four are forced to temporarily stop production in the coming four weeks.
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