The recent Ag Equipment Intelligence/Farm Equipment 2021 Dealer Business Outlook and Trends survey shows some good news. Dealers not only beat last year’s estimates for profitability in 2020, but they’re now predicting greater revenue growth in 2021 than they did for this year. Farm Equipment magazine says when it examined the results of the survey, it clearly showed that more dealers are shifting away from a negative outlook on new equipment revenue.
Over 42% of the dealers indicated that they see their new equipment revenue increasing by at least 2% in 2021, slightly more than the 41% in 2019 who forecasted increased new equipment revenue for 2020. Dealers forecasting an increase of 8% or more in the next year came in at 8.7% of the respondents. That’s still more than double the 3.4% who forecast the same amount of increase in 2020. Those forecasting a 2-to-7% increase dropped from just over 38% in last year’s survey to 33.7% this year.
The most notable change comes from those forecasting little to no change in new equipment revenue, which came in at 46% of the respondents in this year’s survey. That surpasses the levels in both 2018 and 2019.
(From the National Association of Farm Broadcasters)