WHAT ARE HEALTHY AND SENSIBLE annual North American combine/4WD replacement requirements?
The large agriculture equipment industry is in a period of correction. Farm revenues are down. Historic crop pricing charts indicate more years of lower crop prices. Dealerships are loaded with combines. At the request of several organizations, the Western Equipment Dealers Association conducted a fall 2019 combine and 4WD inventory study. The study revealed some surprises along with a few well-known issues in part 1 of this two-part series.
Four-Wheel Drive Units
Q 1: What is your current new and used 4WD inventory?
NEW: Over 83% of respondents indicated their 4WD inventory is low to satisfactory. Dealerships have managed their new 4WD inventories. Going into winter, this is positive.
USED: Almost 30% reported their inventory is higher than satisfactory but still manageable. Over 26% reported being short of used 4WD inventory. This will promote 2020 presells and stock orders.
Q 2: What are your new and used combine inventory levels?
NEW: Nearly 80% indicated satisfactory. Th is is a surprise as both small and large-scale dealerships have shared concerns of excessive new combine inventories. This could hinder 2020 presells/stock orders as dealerships sell ground inventory for next year’s business.
USED: Nearly two-thirds of respondents are dealing with high used combine levels and about 40% of this group reported excessive used combine inventory. Many dealerships will reduce new combine sales while getting their used combine inventories to satisfactory levels.
Western Equipment Dealer Magazine Winter 2019
By Trent Hummel