According to a recent report world demand for agricultural equipment is expected to increase 6.7 percent per year through 2016 to $173.5 billion. “Growth will be driven primarily by sales gains in rapidly developing nations — particularly China, Brazil and India — as these countries continue to mechanize their agricultural sectors. Population expansion and strong economic growth in these nations will put increasing pressure on their agricultural sectors to become more efficient and productive, resulting in a rise in farm machinery sales.”
For North America, “demand will be driven by technological advances, as the efficiency gains afforded by newer equipment with more sophisticated technology will make it economically feasible for farmers to replace their machinery more frequently.”
The study indicates that the agriculture sector as a whole shows no signs of slowing down.
But here’s one part of the study that I found the most interesting. According to the report, China will overtake the United States as the biggest manufacture of agricultural equipment.
“In 2011, the United States held a slight lead over China as the largest producer of farm machinery, with industry shipments of $23.1 billion. However, the Chinese agricultural equipment manufacturing industry is expected to expand rapidly through 2016, while production growth in the United States will be more moderate. As a result, China will overtake the U.S. to become the biggest manufacturer of farm machinery in the world.”
We are truly in a global market.
What trends are you watching?