Tis the year for machinery sales

The tractor market is continuing on its red-hot streak of increased sales, this time recording a 38 per cent jump on last year’s figures and now up 23 per cent year-to-date, according to the Tractor and Machinery Association of Australia’s (TMA) November market report.

The organisation predicted that tractor sales for 2020 will sit well above the 13,000 mark, a number not seen in decades.

“Optimism in the agricultural sector is extremely buoyant at present with a great harvest underway across the nation supported by the Instant Asset Write Off Scheme which has now been extended to June 2022,” said TMA executive director, Gary Northover.

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Breaking the numbers down by state, NSW continues to deliver with another standout result in November, with sales up an astounding 84 per cent YOY and now sitting 37 per cent ahead YTD.

Victoria also reported a solid lift, up 13 per cent YOY and 23 per cent ahead YTD, while Queensland saw an increase of 55 per cent from this time last year and now sitting 16 per cent ahead for the year.

Western Australia sales picked up 54 per cent YOY and is now in line with last year while sales in South Australia dipped for the first time in a while but was still 30 per cent up YTD. Last but not least, activity in Tasmania continues to be strong, now 27 per cent ahead for the year.

“The monthly picture in all states is tending to fluctuate a little more than usual as dealers try to cope with social distancing challenges, stock supply challenges and the very hectic nature of the market,” Northover said.

Looking at the horsepower segments, the smaller end of the market continues to thrive mainly due to the Instant Asset Write off scheme, which supports machinery under $150,000.

The under-40hp range was up 67 per cent for the month and now sits 32 per cent ahead YTD.  The 40 to 100hp range performed strongly as well, up 76 per cent on last year and now sitting 28 per cent ahead for the year.

The 100 to 200hp category held steady and still sits 26 per cent ahead YTD while sales in the 200hp and above range dipped again, leaving this category eight per cent behind YTD. 

“The 200hp plus category has not enjoyed the same level of sales boost as the smaller ranges however, of the back of this year’s outstanding harvest, there is considerable optimism that demand for big tractors will improve,” Northover said.

Tractors aside, combine harvesters are also enjoying a much-needed boost in sales, with numbers now sitting 28 per cent ahead YTD as the industry anticipates “one of the best harvests in recent memory”.

Baler sales continue to boom, up 55 per cent on last year to sit 35 per cent ahead YTD. Sales of out-front mowers are also flying, now 30 per cent up YOY.

“2020 has unquestionably been a standout year and we are mindful of the number of important influences that have shaped this and will impact the year ahead,” Northover said.

“Along with the outstanding weather conditions and the Government’s Instant Asset Write Off Scheme, the issue of stock supply has been a key focus of recent months.”

He said while initial reports have predicted a 12 to 16 week delay on deliveries, some suppliers are citing a four to eight week delay instead.

“There is hope that the worst may not happen here and that factories are adjusting to their new normal,” he said.

“Manufacturers are having to deal with not only the impacts of COVID- 19 on their workforce but also the impact on component manufacturers, an increasing steel price and an increasing shipping cost, all of which will undoubtedly impact machine prices at some stage.”