State of the Industry

摘要

Machinery companies that cater to the livestock sector see down market as an opportunity. Time will tell. That's the mentality of the machinery industry and farmers moving into 2015. As 2014 came to a close, commodity prices were in a slump, and there was still uncertainty of Section 179. The machinery market is facing a year of unknown production and sales. By mid-December, Section 179 did get restored to previous levels (but only for 2014 tax year with 2015 still up in the air). Looking ahead, the leading machinery companies that primarily manufacture row crop equipment will likely cut production. However, in 2014, machinery companies that heavily cater to the livestock sector have seen the down market as an opportunity. "What we are experiencing is the headwind and tailwind of the marketplace for 2015," says Leif Magnusson, Claas president, North America. In fiscal year 2014, Claas had a record year in equipment sales, specifically self-propelled foragers. "Since we are not a market leader, we don't see too many changes in our production and sales levels," Magnusson says.