Stock arrivals help May tractor sales

By: Gary Northover - President, Tractor & Machinery Association

Presented by

Tractor demand continues to exceed supply and May’s figures show stock is still being quickly snapped up, according to the Tractor & Machinery Association

Stock arrivals help May tractor sales
The arrival of stock helped boost May's sales numbers

Sales of agricultural tractors in May were up by 12 per cent on the same month last year and are now 6 per cent behind for the 2022 year to date.

This strong result is largely due to the improvements in larger tractor deliveries following several months of poor supply.

The prevailing theme in the market appears to be if you have the stock, you will get the sale and this is testing customers' brand loyalty more now than at any time in recent memory, particularly with small to mid-range tractors.

Underlying demand for agricultural machines remains very strong, not just locally but worldwide.

Here in Australia, customers have extremely supportive markets for their products and with the support of the Temporary Full Expensing Program (set to run until June 2023) are taking the opportunity to renew their fleets.

Dealers are reporting plentiful order books but continue to struggle with supply. As we reported last month, price rises are continuing and it would seem that many of these appear to be baked in, most notably relating to shipping costs.

Industry experts advise that the introduction of ever more stringent regulations (not just environmental) is leading to cost increases that are having to be passed on.

Looking at sales across the nation, results were strong across the board with New South Wales sales up 10 per cent following a number of down months to be now 9 per cent behind last year.

Queensland was up 16 per cent to be now 3 per cent ahead year to date and Victoria was 14 per cent up on last May, due mainly to supply of small horsepower units, and is now in line with last year.

Sales in Western Australia recorded a huge lift with the arrival of large hp machines, up 26 per cent for the month but still 18 per cent off YTD.

South Australia dropped 14 per cent. Tasmania was up by 17 per cent while sales into the Northern Territory were up 89 per cent. 

Taking a look at the performance reporting categories, the small under 40hp (30kw) category was strongly up 14 per cent to be 1 per cent ahead YTD.

The 40 to 100hp (30-75kw) range was up 11 per cent in the month to remain 4 per cent ahead YTD and  the 100 to 200hp (75-150kw) category was up for the first month in some time, 6 per cent ahead in May to be 10 per cent behind YTD.

The large 200hp (150kw)plus range was the stand out this month after suffering from a lack of supply. It was 27 per cent ahead of the same month last year with more opportunity ahead, still being 25 per cent off YTD.   

Combine harvester sales have now started to occur and there is every expectation of exceeding 1,000 again this year as the renewal of fleets depleted by the drought continues.

The outlook for balers remains subdued as the hay season is yet to get going. It was down in May again and now down 20 per cent compared with last year, and sales of out-front mowers finished down again by 24 per cent.

The 2022 TMA Conference is being held on Wednesday July 20th at the Hyatt Essendon Fields in Melbourne. Tickets are now on sale and can be found on the TMA website.

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