Despite concerns over trade wars and tariffs and a decrease in sales to China, the Ag Economy is very strong. We have data from Manufacturing Industry Specialists, the federal government, and academic institutions that used year-to-date data through October to predict the growing future of Agriculture and Agriculture Manufacturing.
AEM SAYS AG MANUFACTURING SALES are POSITIVE
According to the Association of Equipment Manufacturers, “the ag economy is still strong heading into the final months of 2018…”
This is based on sales numbers during October of 2018. There were only a few sectors that dropped. Self-propelled combines and 4-wheel drive tractors saw a dip, but overall sales remained positive year-to-date.
The FED SAYS SALES are STRONG
The Federal Reserve is also generally positive about the outlook for Agriculture in general and Ag Manufacturing specifically. Every year they publish the Beige Book, a summary of economic activity across the nation. Even despite the lowered number of purchases from China, many farmers were able to maintain a 5-year average in sales and others even saw an increase. Next year will also bring fewer threats of droughts and predictions for increased yields.
AG ECONOMY BAROMETER is UP 22 POINTS
Finally, in early November, Farm Future posted an update to the Purdue University Ag Economy Barometer. The barometer is basically a direct study of farmers’ confidence. The biggest take-away for manufacturers is the confidence to invest. According to the October 2018 survey, “…making investments in farm machinery and buildings yielded a reading of 52 in October, up 10 points compared to September…”
As you can see, it has been a volatile year, month-to -month, but these are the highest numbers of confidence we have seen since 2016. Over all, according to multiple sources with different interests, the Ag economy, and in-turn, the Ag Manufacturing economy, look to be on track to continue to grow within the next year.
CONTACT MAECO for YOUR INDUSTRIAL and AGRICULTURAL NEEDS
MAECO of Oregon has a successful track record for prototyping, manufacturing, and delivering industrial and agricultural components. Whether you need to find the best quality industrial or agricultural components at a competitive price or a single custom solution, call (503) 798-5596 or email us using this link.