Ag Equipment Intelligence’s June 2019 Dealer Sentiments Report showed declining optimism in the Canadian market, including flat sales and rising new equipment prices. Dealers said that steel surcharges and volatile weather patterns were contributing factors of economic downturn.
According to the May unit sales report from the Assn. of Equipment Manufacturers, year-to-date combine sales are down 7.4%. High horsepower tractor sales are down 21.1% and 4WD tractor sales are down 33.3%
Data from the Dealer Sentiments survey also shows that Canadian dealers had a tough first quarter of the year. Comparing sales trends of the various regions shows Canada had the weakest results throughout the first quarter.
On the other hand, comments about their business levels in May from Canadian dealers were not entirely negative. Here’s a sampling of Canadian dealer comments from the June 2019 Dealer Sentiments & Business Conditions Report.
“There was demand in May for late model used tractors, particularly dairy & livestock equipment.”
“We have had success lowering our used combines & tillage inventory.”
At the same time, several Canadian dealers did point to various factors that impacted their sales during the first part of the year.
“Sales are flat and service is down which we attribute to the poor weather conditions.”
“Large used equipment has suffered as a result of the trade disputes.”
“Dealers need greater incentives to assist with new sales.”
“We are less optimistic as weather delayed planting by more than a month.”
“We continue to see steel surcharges. The model year is up 2% and new 140HP+ pricing will be up 4-10% depending on model.”