Large Spring Deliveries Of Tractors And Equipment Meeting Local Demand

Recent large deliveries of tractors and equipment reflect strong demand throughout the country on the back of strengthening commodity prices, according to Tractor and Machinery Association (TAMA).

President Kyle Baxter said the second half of 2021 continued the exceptionally strong sales growth of the first half compared to 2020. Overall tractor deliveries to the end of November reflect an average increase in demand by 27%.

“There has been significant growth across the traditional lifestyle 0-60hp segment, which increased by more than 35%, while the 60-100hp horticulture, orchard, viticulture segment up 20% and the 100-120hp dairy sector up 9%.”

The biggest increase was in the 120-250hp mainly arable and dry stock farming sector, which increased 42% compared to 2020. The big agriculture outlays of 250hp+ increased by almost 36%.

“Tractor sales are only one measurement of the state of the industry and we’re also seeing increased equipment demand. Both locally manufactured and imported equipment are all reporting strong demand.”

However, whilst New Zealand is experiencing fantastic growth in tractor and equipment deliveries, so are many other countries across the globe as commodities prices remain favorable.

“Many local and overseas suppliers are stating that production for 2022 is already nearing maximum capacity on large, specialised equipment. There is limited capacity to accommodate new orders that haven’t already been forecasted or placed with the manufacturer. Quarter 1 and 2 2023 delivery time becoming very much a reality for a lot of this type of product.”

This level of global demand plus the inflation of shipping costs and extended ocean shipping timetables all add to the challenge of ensuring equipment deliveries to local customers, Mr Baxter said.

“TAMA is encouraging its members to discuss equipment requirements for spring / summer 2022 and autumn 2023 with their customers as soon as possible.”

Record low unemployment levels and international border restrictions continue to add further challenges across the sector due to the shortage of skilled technical staff. TAMA members are reiterating the same messages as many other NZ businesses: that Covid restrictions and compliance with Covid requirements are adding to the reduced efficiencies across many areas of their businesses, further increasing the challenges presented each day.

On a positive sentiment, TAMA dealership members report a strong uptake of apprentices during this current season. This is helping to future proof the technician support side of the sector, and the recruitment of apprentices is set to remain a key factor for the years ahead across our members, he said.

“As 2021 draws to a close, our many TAMA members will continue working closely with their customers to manage expectations and plan ahead for 2022 and 2023.”

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