2019 Inventory Study – Combines/4WD Levels and Turns – Part 2
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In part 1 of this series, we shared the 2019 WEDA Inventory Study findings of current comfort levels, dealership equipment turnover, number of used units in a series and, if new unit sales levels are sustainable.

In part 2, we will dig into historical sales of combines and 4WD’s, acres/combine usage, and Canadian/US ratios. Th is will lead to exposing the annual quantity of new combines and 4WD’s needed to replace retiring units.

A 2019 OEM’s study revealed the industry has 4.2x more farm machinery capacity than needed. This factor hovered at 3.7x for a number of years, but why the jump to 4.2x? Speculation on the increase is related to combines. Accelerated depreciation, increased capacity units, healthy farm incomes, and dealerships overselling are a few of the factors that increased customer equipment overcapacity from 3.7x to 4.2x. The sources for new unit data are flash reports from the Association of Equipment Manufacturers.

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Western Equipment Dealer Magazine Spring 2020 Issue
By Trent Hummel

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