Tractor purchases slow after bumper 2014 sales

Tractor purchases slow after bumper 2014 sales

Tractor sales dropped by 17% in the first half of 2015 compared to the same period last year but show indications of a strong recovery over the long term, according to the Tractor and Machinery Association (TAMA).

While industry sales data gathered by TAMA, revealed fewer sales from January to June this year, president Mark Hamilton-Manns said this was not unexpected given record sales last year.

“Tractor sales have traditionally been a strong indicator of confidence in the primary sector,” said Mr Hamilton-Manns.

“However, following exceptional tractor sales in 2014, we always expected a small decline in 2015.

“While it’s a bigger dip than we expected, we think it’s a blip and tractor sales will recover in the second half of the year, although not to the highs we experienced last year.”

Mr Hamilton-Manns said the tractor and machinery industry is in good heart, with companies reporting via a TAMA industry survey that they require nearly 50 per cent more apprentices to service and repair farmers’ machinery and tractors.

“The industry is still feeling confident about the future, as indicated by their desire to employ another 150 apprentices across the country.

“The challenge for our industry is to attract quality people with an interest in engineering and mechanics. Modern tractors and machinery are vital to increasing productivity on-farm.”

A total of 1465 tractors were purchased between January and June 2015, compared to 1,770 tractors in the same period in 2014.

The Waikato region saw a decrease in tractor sales for January to June, but still led the way with 238 tractors sold. It was followed by Auckland with 150 purchases and Southland with 125.

Auckland bucked the national trend with 27 more tractor sales compared to the same period last year. East Cape also more than doubled sales, with 29 compared to 12 in 2014. South Canterbury saw a very small increase with 67 sales compared to 66 in 2014.

In other areas, sales either declined or remained the same as last year.

During June this year, the Auckland, West Coast and North Canterbury regions all saw higher tractor sales than in June 2014.

Mr Hamilton-Manns said the continued demand for new tractors demonstrated the desire by New Zealand farmers to update aging product with new technology, maximise machine up-time and reduce annual repair and maintenance expenses.

“Farmers recognise the investment in research and development conducted by tractor and machinery manufacturers, that is resulting in improved fuel economy, product reliability and uptime. The importance of partnering with a local dealer network cannot be overstated.”

ENDS

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