Confidence, Dealers, Farm Machinery, Farming, TMA, Tractors

TMA dealer survey shows confidence in new tractor sales

A record number of dealers have contributed to the TMA’s latest sentiment survey, with optimism about tractor sales increasing

The Tractor and Machinery Association (TMA) has released results from its latest dealer business sentiment survey, which has shown reasons for optimism in a challenging period for the industry.

The survey, which compared sentiment to its previous edition in July, had responses from 124 dealers across all states and aims to provide a regular snapshot of sentiment across the country.

November’s survey had a record number of responses and revealed a slight increase in the number of dealers (15 per cent compared to 12 per cent) who expected new tractor sales to increase in the next six months.

A larger portion than last time expected sales to remain unchanged, while the percentage who expect decreased sales dropped from 56 per cent to 37 per cent.

Expectations around combine harvester sales remained largely the same as July’s survey, although there was a much lower percentage who expected baler and hay tools sales to increase .

Overall satisfaction levels about the past six months of turnover remained low, while turnover expectations for the next six months remained much the same as the past TMA survey.

It showed 44 per cent of dealers expect overall turnover to remain unchanged in the next six months, with another 44 per cent expecting a decrease and 12 per cent forecasting an increase – figures which largely match July’s survey.

In terms of other equipment types, the sprayer market remains steady, while there was a slight increase in the percentage of dealers who expected new implement sales to rise in the next six months.

There were also clear signs the used equipment market will remain strong.

A significant increase (64 per cent compared to the previous 50 per cent) was recorded in those who expect the already healthy used equipment sales market to remain unchanged, while aftersales parts support is expected to remain steady.

Another positive sign for the sales market came via inventory levels.

With an oversupply of stock having been an issue for dealers, the percentage who described their current new tractor inventory levels as high dropped from 66 per cent to 53 per cent, while there was an increased percentage who described their stock levels as average.

The same principle also applied to new combine harvesters, with a reduction from 60 per cent to 47 per cent of those describing their stock as high.

With the exception of South Australia, there was also a higher percentage of respondents who expect to increase their workforce.

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