With that, the sector would exceed the threshold of €8 billion in turnover from German production. Scherer was sure that a continued stable development could also be expected for 2014.
Growth by nine percent in the first half of 2013
Manufacturers of agricultural machinery and tractors in Germany have increased their turnover by a good nine percent to €4.78 billion in the first half of 2013, reaching a new record level. Scherer summarised the current dynamism in the sector, saying: “The stable turnover in the first quarter was followed by a considerable expansion in production between April and June”. In the second quarter, turnover increased by 17 percent to €2.53 billion. “Such extensive growth exceeds our expectations by far,” he said and continued that orders on hand were, however, still slightly above the level of the previous year.
Noticeable dynamism in the agricultural machinery sector worldwide
Both supplies to the German agricultural machinery dealers and to the export markets were perceptibly higher in the first six months. The tractor segment, with growth by 14 percent, is worth special mention. At the three largest production locations in Germany, more than 33,000 tractors left the production line, including 22,500 tractors with an engine output of more than 120 hp.
Growth in turnover for harrows, mowers and especially for plant protection equipment was also above average. This year, important impulses for manufacturers are particularly coming from France and the United States as well as Germany, whereas deliveries to Russia and the United Kingdom decreased clearly. Scherer said: “Looking from an overall view, we can, however, speak of noticeable dynamism in the agricultural machinery sector worldwide”. VDMA estimates the global agricultural machinery production volume for 2013 to be approx. €96 billion, which means that significant growth by about six percent can be expected.
China rapidly gaining importance
Particularly intensive growth is currently perceptible on the Chinese agricultural machinery market. “A real trend towards modern agricultural machinery and tractors has emerged in China, from which particularly Western high-tech brands can benefit,” Scherer emphasised.
However, the leading positions in the current VDMA export ranking are still in familiar hands. For German exporters, France is far ahead in first place, followed by the United States, Russia and the United Kingdom. “Notwithstanding any movement to be found in our new sales markets, we must, of course, by no means forget the central significance of the European Union and particularly Western Europe in terms of value”, said Scherer. After all, more than two thirds of all deliveries are addressed to the established, traditional markets in Europe.
European business climate excellent – further investment willingness expected
Due to the very pleasing development in the sector, the current business climate is also excellent. “The fact that almost 80 percent of the top managers polled in Europe are satisfied with the business situation, makes it clear how stable the position of the sector is in the present economic boom phase,” said Scherer in view of the latest results of the CEMA Business Barometer, a monthly survey of senior managers in the European agricultural machinery industry.
Expectations for the future could also hardly be better. More than 40 percent of the participants see a continued stable development at the existing level, while a further 37 percent even expect further growth in the next six months. “Despite the somewhat tight situation on the international grain market, farmers’ willingness to invest appears to be undiminished, particularly as other agricultural commodities such as milk or pork, for example, are showing a very positive development”, said Scherer.
Further intensification of commitment to promote young talent
As innovative technology can only be created if know-how is available, the sector will continue to promote young talent. This year in Hanover, the industrial associations DLG, Land Bau Technik, VDI and VDMA will be making a joint appearance in a campaign for young employees.
“As qualified young employees are absolutely essential for the future viability of agriculture and agricultural machinery, we have once again significantly expanded our activities in 2013 and organised them to meet the needs of the target groups,” Scherer explained. He continued that the longstanding and successful cooperation in this area among the associations showed that attracting and promoting young employees in the agricultural and agricultural machinery sectors were not just a flash in the pan but long-term objectives.
