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Summary
- Tractor industry saw positive trading towards the end of 2020, after ups and downs faced throughout the year.
- Tractor and Machinery Association (TAMA) says the year 2021 is appearing to be strong, with the demand for tractors increasing across different industries.
- With several markets, worldwide still witnessing COVID-19 related restrictions, tractor industry believes that it needs to tread carefully.
Like most other industries that witnessed disruption due to COVID-19, the tractor industry had also witnessed a lull in business. There was a 15.3% downfall in the sale of tractors in 2020 as compared to 2019.
Image Source: Shutterstock
Tracker sales ended 2020 on solid note
The sales in December 2020 went up by 18.4% as compared to the same time, previous year and therefore TAMA (Tractor and Machinery Association) is hopeful for a better trading year in 2021.
Kyle Baxter, TAMA president revealed that there is a growing demand for tractors throughout the country as the customers are upgrading to secure machine varieties for the year 2021.
While there were several industrial and global challenges faced in the year 2020, the current year is looking positive ahead. While the industry was not surprised with the reduction of sales in heavy machinery because it was ongoing concern and anticipated back then, things when further south due to the pandemic.
Tractor sales in 2020
Over the year however, there were some HP segments that actually did better than the others, lifestyle tractors being one of the primary examples. They recorded sales, which was not much different from the year 2019.
There was only a mere 5% decline in the sale of tractors used in the horticulture and viticulture verticals, as compared to 2019, which had been record-breaking.
The heavier machinery, with higher horsepower, conventionally utilised in cropping and dry stock farming space, was the one hit worse with a decline of 20% as compared to 2019.
Image Source: Shutterstock
How did the Pandemic affect NZ’s tractor industry in 2020?
The uncertainties in trade that rose due to the pandemic affected the HP segment, which is responsible for the sale of several tractors. What is more is that there was a problem finding people to operate heavy machineries owing to the lockdown and safety rules imposed in most parts of the world. All this had to have affected the business adversely.
While there is still trade upheaval being witnessed across the world due to COVID-19, especially in the European, Asian, and American markets, the New Zealand market is treading carefully. Though there are anticipated delays due to international travel restrictions, TAMA is currently trying its best to ensure timely deliveries.
Mr. Baxter urged TAMA authorities to keep up with any potential delays in the shipping of products and communicate with the clients who could be affected as a result of these postponements.
