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          1. Agricultural Machinery Manufacturing Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 7/13/2020
            SIC Codes: 3523
            NAICS Codes: 333111
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from Agricultural Machinery Manufacturing Industry Profile

            Companies in this industry manufacture agricultural equipment and machinery, as well as commercial turf and lawn care equipment. Major companies include AGCO, Deere, and Lindsay Corporation (all based in the US), along with Claas KGaA (Germany), CNH Industrial (UK), Kubota (Japan), Mahindra & Mahindra (India), and Shifeng Group and YTO Group (China).

            Worldwide, unit sales of agricultural machinery are forecast to grow at a compound annual rate of 2.8% through 2024, reaching about $130 billion in revenue, according to Persistence Market Research. Europe, the US, and China are the largest markets.

            The US agricultural machinery manufacturing industry includes about 1,000 companies with combined annual revenue of about $23 billion.

            COMPETITIVE LANDSCAPE

            Demand for agricultural machinery is driven by farm income and crop production projections for the next season and can vary highly year to year. The profitability of individual companies depends on the volume of products sold, since many manufacturing costs are fixed. Big companies have large economies of scale, especially in manufacturing tractors and combines. Small companies can be successful by making specialized equipment, especially tractor attachments. The US industry is highly concentrated: the 50 largest companies generate nearly 85% of revenue.

            Imports of agricultural equipment, primarily from countries such as China, Germany, Mexico, Japan, and Canada make up about one-third of the US market. Exports account for about a third of US production. Major export markets include Canada, Mexico, and Australia.

             
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