Agriculture and construction manufacturers are upbeat about the continuing economic recovery. A second-quarter 2021-member survey done by the Association of Equipment Manufacturers (AEM) showed optimism remains as strong as it did in the first quarter survey. Benjamin Duyck, AEM director of market intelligence says, “Member perception showed a bit more stability in some spots and perhaps a slight decline in other areas of our industries, but overall, they showed great progress.”
Ag equipment manufacturers aren’t concerned about the recovery being thrown off track. About 76 percent of the 2nd quarter survey respondents reported growth compared to the previous quarter. An even-stronger 87 percent reported growth compared to the previous year. Looking ahead, 90 percent think that growth will continue during the next 12 months. While most AEM members think growth will continue, the general consensus is that the rate of growth will slow a bit.
Looking at the total of all ag equipment categories, 6-10 percent growth is expected over the next 12 months, against 11-15 percent growth experienced over the past year. Among the individual ag equipment categories, trailers and transportation equipment grew more than 20 percent over the past year, while 16-20 percent had been predicted before that.
The National Association of Farm Broadcasting and the American Farm Bureau Federation contributed to this report.