Bad harvest: Competition from imported agricultural machinery has reduced revenue

The Agricultural Machinery Manufacturing industry has struggled over the past five years. Industry revenue is expected to decline at an annualised 3.1% over the five years through 2019-20 to reach $769.9 million. This includes an expected 0.5% decline in revenue in the current year. Although revenue has declined, several positive trends have benefited the industry over the past five years. Rainfall in New Zealand has trended upwards over the period, increasing crop yields. This has increased the free cash flow of some farms, enabling more businesses to purchase expensive agricultural machinery. Lower interest rates have spurred more farmers to take on debt in order to purchase machinery over the past five more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25
Market Share of Companies

Industry Threats & Opportunities

  • Private capital expenditure on machinery and equipment has increased, assisting the industry
  • The Agricultural Machinery Manufacturing industry has struggled over the past five years
  • Industry revenue is projected to grow at an annualised 0.9% over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Agricultural Machinery Manufacturing industry exhibits a low level of market share concentration, with the four largest industry firms accounting for less than 40% of industry revenue. The industry is highly fragmented with manufacturers typically specialising in a specific product niche. External competition from imports is strong, as mass-produced agricultural machinery is typically imported from countries with strong technical expertise, economies of scale or low production costs, such as the United States, Germany and China. Barriers to entry are moderate, with significant capital investment required to initiate manufacturing operations. However, barriers to entry are lower for firms that specialise in narrow market niches. Mar...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:

  • Production of premium goods/services
  • Economies of scale
  • Access to niche markets
  • IBISWorld analysts also discuss how external factors such as Cash rate and Level of annual rainfall in the Agricultural Machinery Manufacturing industry impact industry performance..

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    What's in this report

    What is the Agricultural Machinery Manufacturing in New Zealand Industry?

    Industry operators primarily manufacture agricultural machinery and parts, including tractors, lawnmowers, and planting and harvesting equipment.

    Industry Products
  • Planting machinery
  • Harvesting machinery
  • Other agricultural machinery and parts
  • Agricultural machinery
  • Industry Activities
  • Agricultural harvesting equipment
  • Agricultural planting equipment
  • Irrigation equipment
  • Agricultural implement
  • Mowing equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Cash rate
  • Level of annual rainfall
  • Private capital expenditure on machinery and equipment
  • Trade-weighted index

  • Current Performance
  • Demand drivers
  • Products and markets
  • Cost structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand drivers
  • International trade
  • Industry structure
  • Cost structure
  • 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
  • Agricultural and Construction Machinery Wholesaling in New Zealand
  • Forestry and Logging in New Zealand
  • Hardware and Building Supplies Retailing in New Zealand
  • Agribusiness in New Zealand

  • Key Selling Industries
  • Fabricated Metal Product Manufacturing in New Zealand
  • Medical, Surgical and Scientific Equipment Manufacturing in New Zealand
  • Rigid and Semi-Rigid Polymer Product Manufacturing in New Zealand

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

  • Demand Determinants
    Major Markets
  • Exports
  • Wholesalers
  • Primary producers
  • 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
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Agricultural Machinery Manufacturing Industry

  • Industry Globalization
    Waratah NZ Limited,
  • Table: Waratah NZ Limited - financial performance

  • 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 (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Exports (2011-2025)
  • Imports (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Poultry Incubator
  • A device that simulates natural incubation by controlling temperature and humidity.
  • Thresher
  • A machine used to separate seeds or grain from plant stalks.
  • Tillage
  • The turning and preparation of land for crop growing.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Agricultural Machinery Manufacturing in New Zealand 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 in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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