Tractor Sales Boom now 12 months old.Posted by Mim Monkivitch, 10th March 2021
The sales of agricultural tractors have now completed their twelfth (12th) consecutive month of record sales to be 34% ahead on an annualised basis compared to the same time last year. 2020 saw tractor sales pass the 13,000 unit mark for the first time in around 40 years and we are currently tracking above that level at around 14,000 units per year.
February Sales were up 74% on the same month last year and this reinforces the extent of the challenges felt by the industry 12 months ago. The current level of activity is even more remarkable given the strains with supply being experienced right across the supply chain, although there are early signs that this may be improving. Since mid 2020, supply of product from manufacturing facilities in Europe, the US and Asia have been heavily impacted by the COVID 19 lockdowns and social distancing requirements. An indicator of this is the amount of shipping activity being seen through Australian ports which were reported to be around 40-50% of normal capacity mid last year. This has now improved to around 90% of normal capacity.
Activity in the month was strong in all states with NSW again the standout up 104% on the same time last year and now 107% for the 2021 YTD. Victoria reported a solid lift up 53% sitting 43% ahead for the year, meanwhile Queensland was up 61% to be 62% up YTD.
Western Australia sales picked up 92% to be 72% ahead for the year, sales in South Australia were solid, 83% up and finally Tasmania finished the month 45% ahead.
The increase in sales numbers is spread evenly across the four reporting categories, supported by the Instant Asset Write off scheme. The under 40hp (30kw) range was up 66% for the month.(73% YTD) The 40 to 100hp (30-75kw) range was again up strongly 68% in the month (63% YTD), the 100 to 200hp (75-150kw) category was up 55%. (50% YTD)
The large 200 hp (150kw) PLUS range enjoyed another strong rise, up 141% and is now 110% ahead for the year. Sales of this category of larger tractors have been the most heavily hit by supply issues and we are now seeing evidence of the backlog of orders from 2020 now coming through.
The Federal Government’s Instant Asset Write Off Scheme is due to expire on June 30 2021 so we expect a continuation of the strong demand for machines to remain at least until then.
Sales of Combine Harvesters are in a period of hiatus with the usual order intake season now well underway.
Baler sales were up 55% on the same month last year and are expected to remain strong in 2021 and sales of Out – Front Mowers are still flying, up 51% ahead of the same time last year.
SAVE THE DATE. We can now advise that the TMA’s Annual Conference is to be held once again this year in Hyatt Melbourne, Essendon Fields on Tuesday July 20th.
Full event details will be published shortly and we hope that people will take the opportunity to come together again after what feels like a very long break.
Executive Director TMA