Solid start for tractor sales

The Tractor & Machinery Association of Australia reports that tractor sales have got off to a bright start for 2022, despite the ongoing turmoil of the COVID-19 pandemic and its many knock-on effects, including supply chain disruption, labour shortages, and more.

“The first month has seen the positive trend for tractor sales continue, with January’s figure broadly in line with the same month last year,” write the TMA, in its January report.

“Given the very frantic nature of the industry at present, dealers continue to deliver to their customers at a level not seen for many years. Customer demand has been extreme from both a machinery and parts and service perspective in support of this year's harvest. Dealers continue to deal with the challenges associated with managing workforces around COVID restrictions, the ongoing shortage of stock, and the occasional ‘hand grenade’ such as the shortage of AdBlue.

“Beginning in New South Wales, sales were broadly equivalent to last January. Queensland was again strong, up 4 per cent, and Victoria was up 7%.

“Sales in Western Australia recorded another drop this time, 28% for the month, following a frantic harvest season, while South Australia dropped 11%. Tasmania fluctuated wildly again, this time down 22%, whilst sales into the Northern Territory enjoyed a strong month to be 22% up.

“Taking a look at the performance reporting categories, the large 200hp (150kW) plus range was down 45% compared to the same month last year. This result is behind the drop in the West, where the industry is in somewhat of a slow period following an extremely busy end to 2021, but it may be wise not to read too much into the one month’s figures.

“The small, under 40hp (30kW) category was up 6%. The 40-100hp (30-75kW) range was again up strongly, 6% for the month, and the 100-200hp (75-150kW) category was up 9%.

“As we wrote last month, combine harvester sales finished last year above the 1000-unit mark for the first time since 2011. The order intake period for 2022 is presently underway and dealers are expecting another strong year.

“Baler sales were down slightly in January and sales of out-front mowers finished down 26% on the same month last year.

“Supply of machines continues to be a challenge, as supply chain shortages around the world show no signs of abating. The forecast for 2022 is for another solid year supported by very healthy commodities markets. In some ways, the long lead times have been of benefit to the industry in that it has had the effect of ‘smoothing out’ the peak in demand. Had ready supply been available through 2021, then one suspects it may have been too much to handle!”

The TMA also report that planning is well underway for the 2022 TMA Conference, which has been scheduled for Wednesday, July 20th, at the Hyatt Essendon Fields in Melbourne. More details regarding the event will be released in coming weeks.