U.S. AGRICULTURAL EQUIPMENT EXPORTS DROP 13.5 PERCENT IN 2015
Exports of U.S.-made agricultural equipment dropped 13.5 percent in 2015 compared to the previous year, for a total $7.4 billion shipped worldwide, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data it uses in global market reports for members.
AEM is the North American-based international business group representing the off-road equipment manufacturing industry.
Asia and Central America closed out 2015 with gains while nearly all other regions recorded double-digit declines, led by South America.
Year-end 2015 agricultural equipment exports by major world regions compared to year-end 2014:
- Canada dropped 17 percent, for a total $2.2 billion
- Europe declined 22 percent, for a total $1.5 billion
- Central America gained 7 percent, for a total $1.2 billion
- Asia gained 17 percent, for a total $883 million
- Australia/Oceania fell 4 percent for a total $702 million
- South America dropped 35 percent, for a total $653 million
- Africa decreased 24 percent, for a total $265 million
AEM Market Analysis Overview
AEM’s Benjamin Duyck, director of market intelligence, provides some insights:
Agricultural equipment exports continue to be down for the third year in a row, though the decrease in 2015 was not as strong as the 29.2-percent one in 2014.
When we look at quarterly change, the decrease in the fourth quarter of 2015 (3.9 percent) was the lowest year-over-year decrease since the fourth quarter of 2012. When we look at the initial results of our fourth-quarter North American Agricultural Equipment Industry Conditions Trends Survey, which tracks the perceptions of member manufacturers, of those that exported goods, 77 percent of respondents indicated their exports were either declining or remained somewhat stable.
The global economy is experiencing a long-term slump in commodity prices which has put downward pressure on agricultural exports. In early February, the USDA indicated U.S. farm income is expected to continue its decline into 2017. External headwinds such as the global economic malaise combined with a strong U.S. dollar ushering in a new normal makes it appear the declines will continue into 2016.
Exports by Top 10 Countries
The countries buying the most U.S.-made agricultural machinery during 2015 (by dollar volume):
- Canada - $2.2 billion, down 17 percent
- Mexico - $1 billion, up 11 percent
- Australia - $625 million, down 2 percent
- China - $471 million, up 47.5 percent
- Germany - $255 million, down 13 percent
- Brazil - $208 million, down 49 percent
- France - $199 million, down 2 percent
- South Africa - $167 million, down 31 percent
- United Kingdom - $157 million, down 10 percent
- Chile - $153 million, up 5 percent
Economic Resources Available
AEM provides a variety of market macroeconomic and industry trend data for members as well as survey opportunities and custom research. Visit www.aem.org in the Market Data/Market Intelligence section. For more information, contact AEM’s Benjamin Duyck, director of market intelligence (firstname.lastname@example.org).
About the Association of Equipment Manufacturers (AEM) - www.aem.org AEM is the North American-based international trade group providing innovative business development resources to advance the off-road equipment manufacturing industry in the global marketplace. AEM membership comprises more than 850 companies and more than 200 product lines in the agriculture, construction, forestry, mining and utility sectors worldwide. AEM is headquartered in Milwaukee, Wisconsin, with offices in the world capitals of Washington, D.C.; Ottawa, Canada; and Beijing, China.