Stronger-than-expected growth in 2021 has manufactures feeling optimistic about the upcoming year, according to a recent survey from the Association of Equipment Manufacturers.
According to the survey, more than 80 percent of AEM members anticipate rising demand for construction and agriculture equipment over the next year. Furthermore, roughly 65 percent think demand for ag equipment will be above normal, while 44 percent think demand for construction equipment will be above normal.
Supply chain issues and difficulty in finding employees were noted, with nearly 95 percent indicating that supply chain issues are impacting their business, and more than 80 percent are having a hard time finding filling open manufacturing jobs.
Despite reduced government payments in 2021, U.S. farmers are in a strong economic position, according to AEM Director of Market Intelligence Benjamin Duyck.
Net farm income is estimated to have increased by 19.6 percent in 2020 and is forecasted to increase another 19.5 percent in 2021 to $113 billion, Duyck says. Net farm income is at its highest level since 2013 and is 20 percent above its 2000-2020 average.
Farmers have been taking advantage of their good financial position to invest in new equipment. According to the survey, AEM members expect equipment sales to continue at their current pace, with higher growth in some sectors, including attachments, irrigation and sprayers and tractors.
Agricultural machinery data shows that the U.S. is expected to finish this year up 21.2 percent. Growth next year is forecasted to be 5.2 percent, followed by 3.4 percent in 2023, according to AEM.