Off season: Industry revenue declines as operators struggle to compete with imports

Import competition and mixed downstream conditions have affected the Agricultural Machinery Manufacturing industry's performance over the past five years. Despite overall growth, farm incomes have displayed significant volatility over the period, mostly due to drought and extreme weather events. This income volatility has discouraged farmers from investing in new machinery and contributed to the industry's decline over the past five years. When farmers have invested in new equipment, they have increasingly turned to imports, as global agricultural machinery manufacturers have grown in scale and can offer lower prices than local producers. However, an overall increase in demand from the agricultural sector has helped to somewhat limit industry revenue falls over the past five more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Rising demand from the agricultural sector has helped to limit industry revenue falls
  • Industry firms have faced higher input costs as prices for plastic and rubber components have risen
  • Competition from foreign manufacturers is forecast to reduce demand for industry products
  • Industry Report - Industry Key Buyers Chapter

    The industry displays a low level of market share concentration. In 2018-19, the four largest operators in the industry are estimated to account for less than 8% of total revenue. Over the past five years, market share concentration has remained relatively stable due to the small scale of most industry firms. This trend is projected to continue over the five years through 2023-24.Globally, multinational players such as John Deere and CNH Global are major manufacturers of agricultural machinery. However, these companies do not have manufacturing facilities in Australia and therefore are not included in the industry. Within the industry, local manufacturers tend to be small firms that specialise in lower-value agricultural equipment products and parts. How...purchase to read more.

    Additional Insights for the Agricultural Machinery Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Agricultural Machinery Manufacturing are:

  • Economies of scale
  • Proximity to key markets
  • Production of premium goods/services
  • IBISWorld analysts also discuss how external factors such as Demand from agriculture and Private capital expenditure on machinery and equipment in the Agricultural Machinery Manufacturing industry impact industry performance..

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    What's in this report

    What is the Agricultural Machinery Manufacturing Industry?

    Industry firms primarily manufacture agricultural machinery, equipment and specialised parts. This machinery includes lawnmowers and planting and harvesting equipment. Firms that mainly repair agricultural equipment and machinery are excluded from the industry.

    Industry Products
  • Planting machinery
  • Harvesting machinery
  • Agricultural machinery
  • Other machinery and parts
  • Industry Activities
  • Agricultural harvesting equipment
  • Agricultural implement (except garden tools)
  • Agricultural planting equipment
  • Irrigation equipment
  • Lawnmower
  • Mowing equipment
  • Windmill
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from agriculture
  • Private capital expenditure on machinery and equipment
  • Realised farm income
  • Trade-weighted index
  • Level of annual rainfall
  • Value of merchandise trade imports

  • Current Performance
  • Revenue and profitability
  • Demand conditions
  • Strong competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Rising competition
  • Potential opportunities
  • Table: Agricultural Machinery Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Agricultural Machinery Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Farm and Construction Machinery Wholesaling
  • Machinery and Scaffolding Rental
  • Local Government Administration
  • Gardening Services
  • Agribusiness
  • Organic Farming

  • Key Selling Industries
  • Iron Smelting and Steel Manufacturing
  • Power Automation Products and Other Electrical Equipment Manufacturing

  • Products & Services
  • Agricultural machinery
  • Other machinery and parts
  • Planting machinery
  • Harvesting machinery
  • Chart: Agricultural Machinery Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Crop farmers
  • Livestock producers
  • Horticulturists
  • Wholesalers
  • Viticulturists
  • Chart: Major Market Segmentation for the Agricultural Machinery Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Agricultural Machinery Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Agricultural Machinery Manufacturing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Agricultural Machinery Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Agricultural Machinery Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Crawler Tractor
  • A construction and agricultural tractor that moves on tracks rather than wheels.
  • Cultivator
  • Farm machinery used to stir and pulverise soil, either before planting or to remove weeds, and to loosen and aerate soil.
  • Seeder
  • An agricultural machine used to plant seeds in the soil.
  • Tillage
  • The agricultural preparation of soil by mechanical agitation.
  • Viticulture
  • The production and study of grapes, primarily to produce wine.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Agricultural Machinery Manufacturing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Agricultural Machinery Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Agricultural Machinery Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Agricultural Machinery Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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