The following story is an excerpt from the 40-page 2017 Rural Lifestyle Dealer Business Trends & Outlook Report. Email Lynn Woolf for a copy of the complete report, lwoolf@lessitermedia.com.
Dealers selling to the rural equipment market forecast another good year for revenues this year, following several years of strong growth. A growing customer base, solid homebuilding trends and stable unemployment rates are some of the factors contributing to this optimism.
Dealers can also draw on a diverse customer base, including homeowners, “pro-sumers,” landscapers, municipalities and commercial contractors. This diverse base is buying a diverse lineup of equipment, from string trimmers to 100 horsepower tractors.
This section of Rural Lifestyle Dealer’s 2017 Dealer Business Trends & Outlook Report breaks down forecasts and strategies on 5 major manufacturers, Massey Ferguson (AGCO), Case IH, John Deere, Kubota and New Holland. Here’s a comparison of optimism among the brands.
Kubota dealers are the most optimistic among the dealer groups, when comparing revenue growth forecasts. More than 56% expect revenues to grow 2-7% and about 5% expect revenues to grow 8% or more. About 8% expect revenues to decline 2-7% or more.
John Deere dealers rank next in terms of optimism over revenue growth. Almost 44% expect revenues to grow 2-7% and about 11% expect increases of 8% or more. Fifteen percent forecast revenue decrease of 2-8% or more.
Massey Ferguson (AGCO) dealers rank third. Forty percent forecast revenue increases of 2-7% and 10% expect revenues to increase 8% or more.Ten percent expect revenues to decrease 2-8% or more.
New Holland dealers rank fourth out of the five manufacturer groups. About 31% expect revenues to increase 2-7% and about 6% expect increases of 8% or more. More than 15% expect revenues to decline 2-8% or more.
Case IH dealers rank the lowest among the 5 manufacturers in terms of optimism about 2017 revenues. Twenty-eight percent forecast revenues to grow 2-7%; 8% forecast increases of 8% or more; and 24% forecast decreases of 2-8% or more.
Forecasting Aftermarket Revenue Growth
Dealers are even more optimistic about aftermarket revenue growth, with Massey Ferguson (AGCO) dealers ranking as the most optimistic among the 5 major manufacturers.
Half of Massey Ferguson dealers forecast revenue to increase 2-7% and 10% forecast increases of 8% or more. About 3% forecast revenue declines of 2-7% and none of the responding dealers forecast declines above 7%.
Kubota dealers ranked next for aftermarket revenue growth. About 35% forecast aftermarket revenue increases of 2-7% and about 19% forecast increases of 8% or more. None of the responding Kubota dealers forecast declines for aftermarket revenues.
John Deere dealers ranked third. About 48% expect aftermarket revenues to increase 2-7% and nearly 4% think aftermarket revenues could increase 8% or more. About 11% expect declines of 2-7% and none of the responding John Deere dealers expect declines above that level.
Case dealers ranked fourth in terms of optimism about aftermarket revenues. Nearly 35% expect increases of 2-7% and nearly 9% expect increases of 8% or more. None of the responding dealers forecast aftermarket revenues to decline.
New Holland dealers ranked last among the 5 major manufacturers. About 44% expect aftermarket revenues to increase 2-7% and none of the responding dealers expect increases above that level. About 6% expect aftermarket revenues to decline 2-7% and none expected decreases higher than that.
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