Despite earlier signs of stabilization, recent developments in the European agricultural machinery dealer sector indicate that the downturn will continue.
After a nearly uniform decline in the sector across Europe in recent years, it sometimes seemed as though the worst was behind us. However, the 16 members of CLIMMAR—who collectively represent some 15,000 companies in the trade and maintenance of agricultural, construction, gardening, and landscaping equipment—reported a further deterioration of the situation in the sector. Following a minimal recovery, the CLIMMAR index therefore points to a further decline, to levels last seen in 2016. Rising costs and the contraction of the market for new machinery—which has been shrinking for nearly five years—are of particular concern. A new development is that, in an increasing number of countries within the sector, service revenues from spare parts and workshop activities are no longer offsetting losses in the machinery sector, as was previously the case.
Every six months, CLIMMAR assesses the current economic climate in its 16 member states and summarizes the results in a score between +3 and -3: the CLIMMAR Index.
Regarding the near-term expectations of companies in the agricultural mechanization industry across the 16 member states, several positive trends are evident. However, the most recent global political developments occurred after the survey was conducted, so their impact has not yet been factored into these findings.
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