According to a semi-annual survey conducted by global agricultural machinery coalition Agrievolution Alliance, the outlook for machinery sales and business growth is strong for the short term.
Overall, companies reported low delivery times for new machines, growing second-hand machinery markets in the U.S. and Korea, more orders for machines within the past three months and fully employed production capacities for at least the next three months.
Specifically, companies surveyed indicated that a majority of Japanese manufacturers, unlike previous months, have a positive outlook on the market situation.
In the United States, the outlook is also positive. Half of the companies surveyed expect to see sales growth in the next six months, while the rest expect to at least maintain the high level reached in 2012.
However, there are growing concerns among U.S. manufacturers regarding policy and commodity instabilities.
"While business remains positive, we have seen fluctuations in commodity supply and demand, especially corn. The next edition of the Farm Bill is being formulated in the U.S. House and Senate, and that also adds some uncertainty for the strength of future business," the Association of Equipment Manufacturers, Agrievolution Alliance secretariat, said.
Currently, Indian and Brazilian companies have confirmed booming business, while more cautious voices come from Europe, where some markets are declining.
The survey – dubbed the "Agritech Business Barometer – is used to obtain timely global market trend data for members' use in business planning. It covers 200 participants from Brazil, western Europe, Japan, India, South Korea, Turkey and the United States.
The alliance is formed of agricultural equipment manufacturing associations that work to advance member companies' interests in industry issues, data exchange and public policy on a worldwide basis.
Find the full report on the Agrievolution website.