TAMA president Kyle Baxter says both locally manufactured and imported equipment are all reporting strong demand.
Recent large deliveries of tractors and equipment reflect strong demand throughout the country on the back of strengthening commodity prices, according to the Tractor and Machinery Association (TAMA).
But strong international demand, shipping costs and inflation will put pressure on manufacturers to meet demand next year.
President Kyle Baxter says the second half of 2021 continued the exceptionally strong sales growth of the first half compared to 2020.
Overall, tractor deliveries to the end of November reflect an average increase in demand by 27%.
“There has been significant growth across the traditional lifestyle 0-60hp segment, which increased by more than 35%, while the 60-100hp horticulture, orchard, viticulture segment up 20% and the 100-120hp dairy sector up 9%,” Baxter said.
The biggest increase was in the 120-250hp mainly arable and dry stock farming sector, which increased 42% compared to 2020. The big agriculture outlays of 250hp+ increased by almost 36%.
“Tractor sales are only one measurement of the state of the industry and we’re also seeing increased equipment demand. Both locally manufactured and imported equipment are all reporting strong demand,” he said.
However, while New Zealand is experiencing fantastic growth in tractor and equipment deliveries, so are many other countries across the globe as commodities prices remain favorable.
“Many local and overseas suppliers are stating that production for 2022 is already nearing maximum capacity on large, specialised equipment. There is limited capacity to accommodate new orders that haven’t already been forecasted or placed with the manufacturer. Quarter one and two 2023 delivery time is becoming very much a reality for a lot of this type of product,” he said.
Baxter says this level of global demand plus the inflation of shipping costs and extended ocean shipping timetables all add to the challenge of ensuring equipment deliveries to local customers.
