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Machinery And Heavy Equipment

Commodity price declines increase the probability of compensatory planted acreage and grain export increases in 2009.  Farm cash receipts and equipment replacement demand may stabililze or increase, the latter subject, however, to credit availability. 

In 2009, predicted growth, according to one authoritative source, includes 4-wheel drive and 100+ HP 2-wheel drive tractors, combines, planters, self-propelled sprayers, windrowers/swathers, field cultivators, chisel plows, forage harvesters, and cutters. electronic and hydraulic components, and powertrains.  Flat or slowing sales are projected for the more consumer oriented 40-100 and <40 HP 2-wheel drive tractors, in addition to rectangular balers, box scrapers, disk harrows, mower conditioners, tractor backhoes, farm loaders, round balers, and air cooled/diesel engine sales.

Large tractor and Combine growth rates may approach 5 - 10% in 2009, according to Industry sources, although continued grain price declines, credit availability, and dynamic economic conditions may taper these levels. 

Residential and non-residential construction slowing continues to restrain construction equipment sales, and may lead to further decline of as much as 5 - 15% in 2009 as compared to 2008 levels. 

Controversy exists regarding heavy truck sales, as to whether the impending 2009 emissions regulations will result in a pre-sales spike.  Some hold the view that sufficient 2010 engine fuel economy and credit non-availability will avert a repetition of the 2007 pre-regulatory sales surge.

Snow equipment sales have maintained satisfactorily both in the U.S. and Canada as of early 1Q, 2009.

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