Best financial year for tractor sales

Sales of new tractors in Australia climbed one per cent in June 2021 (vs June 2020) to sit 29 per cent ahead for the year, according to the Tractor and Machinery Association of Australia’s latest machinery sales report (TMA).

The total number of tractor sales for the recent financial year ended June 2021 exceeded 15,800 units, a stellar result considering the various challenges faced by the industry, the TMA said.

“This is an outstanding result for the industry and whilst there is cause for celebration, perhaps the focus of this celebration should equally be on the job done by manufacturers, importers, dealers and suppliers to industry in getting this job done in such extreme conditions,” said TMA’s executive director, Gary Northover.

“Delivering such a result against a backdrop of lockdowns, social distancing restrictions, supply challenges, staff shortages and climatic extremes is a credit to the industry.”

Following a full 12 months of stellar sales, the numbers are somewhat stabilising, with June 2021 figures across the country a bit of a mixed bag.

NSW continues to lead the way with a 10 per cent increase in June to finish the year 57 per cent ahead. Victoria was down two per cent for June, but is still 18 per cent ahead for the year. Queensland numbers were up four per cent in June and 25 per cent ahead year-to-date.

Sales in Western Australia fell nine per cent from the same time last year but remains 34 per cent ahead for the year. South Australia reported a 13 per cent decrease in sales for June and sits 10 per cent ahead YTD.

Tasmania finished 24 per cent ahead for the year while Northern Territory is 11 per cent ahead for the year.

All horsepower segments enjoyed strong rises for the year with the under 40hp range up 27 per cent for the year, despite a 20 per cent dip in June.  The 40 to 100hp range was up five per cent in June versus this time last year, and now sits 34 per cent ahead YTD.

The 100 to 200hp category ended the year 20 per cent ahead YTD, while the 200hp and over range jumped 41 per cent YOY to sit 57 per cent ahead YTD.

Sales of combine harvesters have begun in earnest, up 50 per cent on the previous June with dealers reporting solid forward order books.

Baler sales have continued to taper off following recent highs but still ended the year up 23 per cent. Last but not least, sales of out-front mowers increased by 33 per cent YTD.

“Looking forward, whilst it is hard to see the levels of the past year being repeated, there is no doubt that demand is still hot,” Northover said.

“The Federal Government's Temporary Full Expensing program, which essentially replaces the Instant Asset Write Off scheme, will continue to support demand.

“Farming conditions and demand for product are in a very good place with locations such as Western Australia looking very prosperous.”

Offsetting these positives to some degree are the ongoing supply challenges due to manufacturing constraints and logistical issues, the TMA said.

“Dealers’ ability to supply current demand will be wholly dependent on the ordering done last year with current orders being quoted at nine to 12 months away in many instances,” Northover said.

“Pricing pressures are likely to be experienced in the year ahead with reports of eight to 11 per cent  price hikes occurring in Europe and finally, spare parts supply is being stretched in all directions at the moment and having an impact on the supply chain.”

The TMA is pushing ahead with its annual conference on Tuesday, July 20, to be held in Melbourne at the Hyatt Essendon Fields, despite the COVID-19 lockdowns and border closures in several states.

“It is disappointing that many of our interstate visitors will be unable to attend but hopefully we can all fully reassemble again next year,” Northover said.