Ploughed down: Economic uncertainty is discouraging farms from capital investment

Operators in the Agricultural Machinery and Equipment Wholesaling industry sell agricultural and forestry machinery and equipment on the wholesale market. The industry has a low level of concentration, with only two players holding a market share greater than 5%. However, each of the biggest players in the industry has strong links with large global agricultural machinery manufacturers, which is a significant source of strength, particularly in tough market conditions. Adverse economic conditions, erratic weather patterns and changes to the Annual Investment Allowance (AIA) have all had a major influence on the industry's performance over the past five years...read more.

Industry Statistics & Market Size
Revenue
£7.5bn
Annual Growth 15-20
-0.2%
Forecast Growth 20-25
Profit
Employment
22,359
Businesses
1,707

Industry Threats & Opportunities

  • Revenue is expected to fall in the current year as uncertainty reduces capital investment
  • Extreme weather has affected agricultural income, weighing on demand for industry products
  • Increasing meat exports are expected to support growth in demand from downstream farmers
  • Industry Report - Industry Locations Chapter

    The geographical distribution of industry establishments is largely determined by the spread of farming activity across the United Kingdom. Suppliers of agricultural equipment are more heavily concentrated in important agricultural regions. Proximity to transport hubs is also important to companies that import agricultural machinery.The East of EnglandThe East of England has a significant share of crop farming, accounting for 23.3% of establishments in the Cereals, Leguminous Crops and Oilseed Growing industry (IBISWorld report A01.110). The East of England also accounts for 21.1% of vegetable farmers. As a result, the region is home to 12.1% of industry establishments...purchase to read more.

    Additional Insights for the Agricultural Machinery & Equipment Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Agricultural Machinery & Equipment Wholesaling Industry are

  • Having links with suppliers
  • Prompt delivery to market
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Agricultural income and Business lending in the Agricultural Machinery & Equipment Wholesaling industry impact industry performance..

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    What's in this report

    What is the Agricultural Machinery & Equipment Wholesaling Industry?

    Companies in this industry wholesale agricultural machinery and equipment. This includes the wholesale of ploughs, manure spreaders, seeders, harvesters, threshers, milking machines, poultry-keeping machines, bee-keeping machines, tractors used in agriculture and forestry, and lawnmowers.

    Industry Products
  • Tractors
  • Mowing equipment
  • Harvesting machines
  • Haymakers and balers
  • Machinery parts
  • Other agricultural machinery
  • Industry Activities
  • Wholesaling tractors
  • Wholesaling mowing equipment
  • Wholesaling harvesting machines
  • Wholesaling agricultural machinery parts
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Agricultural income
  • Business lending
  • Business capital expenditure
  • Real effective exchange rate

  • Current Performance
  • Trimmed down
  • Volatile weather
  • Farm consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream trends
  • The exchange rate
  • Future funding
  • Table: Agricultural Machinery & Equipment Wholesaling Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Vegetable Growing
  • Dairy Cattle Raising
  • Poultry Raising
  • Hardware & Home Improvement Stores

  • Key Selling Industries
  • Agricultural & Forestry Machinery Manufacturing
  • Freight Forwarding & Customs Agents

  • Products & Services
  • Tractors
  • Machinery parts
  • Other agricultural machinery
  • Harvesting machines
  • Mowing equipment
  • Haymakers and balers
  • Chart: Agricultural Machinery & Equipment Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Multi-outlet dealers
  • Single-outlet dealers
  • Rental companies
  • Other
  • Machine-maintenance companies
  • Chart: Major Market Segmentation for the Agricultural Machinery & Equipment Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitThe average industry profit margin is expected to be 4.3% in 2019-20, down from 11.8% in 2014-15. Strong profitability during this year was the result of an increase in Annual Investment Allowance, which encouraged demand for industry products, and the strong value of the pound. However, over 2015-16, a low return for farmers’ produce limited their willingness to invest into new equipment, which reduced sales of agricultural equipment. This weighed on industry profit, which is highly dependent on sales volumes. The depreciation of the pound in 2016-17 increased purchase costs for industry operators, limiting profitability. Over the current year, profit is expected to marginally decline due to economic uncertainty reducing downstream demand and lowering sales volumes. WagesPurchasesDepreciationMarketingRentUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Agricultural Machinery & Equipment Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Agricultural Machinery & Equipment Wholesaling Industry

  • Industry Globalization
    Deere & Company, AGCO Limited,
  • Table: Deere & Company - financial performance
  • Table: AGCO Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Agricultural Machinery & Equipment Wholesaling 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 & Equipment Wholesaling Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (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
    Arable Farming
  • Farming aimed at producing crops.
  • Pastoral Farming
  • Farming aimed at producing livestock for their meat or their by-products, such as milk and eggs.
  • Silage
  • Fermented green fodder that is compacted and stored before drying, unlike hay, and used to feed livestock.
  • Thresher
  • A device that separates the head of a stalk of grain from the straw and also separates the kernel from the rest of the head.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Agricultural Machinery & Equipment Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 & Equipment Wholesaling:
    • 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 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 & Equipment Wholesaling 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 & Equipment Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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