Rural equipment dealer confidence had been soaring for 2 years. Then 2020 happened — a year like most had never experienced. Uneven demand. Uncertain supply chains. Rising costs.
While some positive signs are emerging for large equipment sales in the production segment of the agricultural industry, sales of small equipment and other rural lifestyle products is where the real action is these days. In addition to the record-setting sales of compact tractors, other segments of this market are also booming.
Slightly fewer dealers who focus on the rural lifestyle segment of the equipment business expect 2019 revenues to match the levels they experienced in the past year. Nonetheless, a majority of them anticipate solid sales revenues during the next 12 months.
As the U.S. economy stabilizes, equipment dealers believe that sales to the consumer or “rural lifestyle” segment of their business will continue to improve throughout the year.
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In this episode of On the Record, brought to you by Associated Equipment Distributors, Deere Director of Investor Relations Josh Beal told JP Morgan analysts that the OEM is confident it will be “producing to demand” in fiscal year 2025.