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Home Food & Agriculture

Fall in June tractor registrations as supply issues worsen

Involve Africa by Involve Africa
July 10, 2022
in Food & Agriculture
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Fall in June tractor registrations as supply issues worsen
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June registrations of new tractors were down by 36.43% on the same month last year as disruption to the supply chain shows no sign of easing.

The Agricultural Engineers Association (AEA) says the typical waiting time between an order and delivery is now six to nine months.

Its latest figures show that there were only 938 new tractor registrations in June.

Sales had been unusually high in June 2021, the AEA pointed out, adding: “This year’s total is towards the bottom end of the range seen for the same month in recent years, although the extended Bank Holiday weekend at the start of the month may have had some impact.’’

See also: How does tax averaging work for farmers

In the first six months of the year 6,420 tractors were registered, a 6.2% downturn compared with that period in 2021, despite reports that there is no shortage of demand.

The AEA says this is indicative of the scale of the supply chain challenges facing manufacturers.

The tractors most likely to be affected are the larger and more powerful and complex machines, as these have more components at risk of supply chain availability.

The AEA is reporting shorter lead-in times for smaller, lower-powered models.

Despite the dip in registrations for the year to date, they are still 6% above the five-year average.

It is not just tractors that are affected by delays – machinery suppliers are also struggling to secure shorter delivery slots for clients.

“For mobile machinery like telehandlers and harvesters it is taking at least as long because they have the same sort of challenges,’’ says the AEA.

The lead-in time for deliveries of implements are shorter.

What the AEA doesn’t have is figures that reflect the impact of market conditions on prices, but with the long delays between manufacturing and delivery it is now typical for a fixed price to not be quoted when tractors and mobile machinery are ordered.

 



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