The agricultural machinery market in the US to grow at a CAGR of 4% during the period 2016-2020.
Agricultural Machinery Market in the US 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
A trend which will definitely boost market growth is the shift toward sustainable agriculture. Farmers in the US are becoming aware of the adverse effects of fertilizers and pesticides on the environment. Therefore, they are taking measures to carry out sustainable farming, by using eco-friendly and efficient agricultural equipment, to reduce the negative impact of agricultural pollutants on the flora and fauna and water quality. Adoption of precision farming methodologies, such as reduction of fuel use, can also help reduce the emission of greenhouse gases.
According to the report, a key growth driver is the shortage of farm labor. Lack of skilled workforce is largely plaguing the agricultural sector in the US. Agriculture is a labor-intensive and time-consuming process. Employment of labor has become expensive as there is a shortage of localized labor supply nationwide owing to an aging workforce and shift of focus among people toward other jobs. The average age of an American farmer is 58 years old. In addition, stringent immigration rules are a major cause of this shortage as most of the laborers employed in farm activities in the US are immigrants. Moreover, a shift in labor from farm to non-farm occupations is seen in countries such as Mexico, which is a significant source of labor in the US, accounting for nearly 1 million workers, owing to the economic growth, the rise in incomes, and better education, leading to a decline in availability of labor. The competition from Mexican farms has further intensified the dwindling supply of labor.
Further, the report states that one challenge that is hampering market growth is the reduction in commodity prices. This is expected to affect the agricultural equipment industry because it negatively impacts farmer sentiment and reduces the affordability of agricultural equipment.
– Combine Harvester
– Haying Machinery
– Planting and fertilizing machinery
– Plowing and cultivating machinery
– Livestock machinery
– Deere & Company
– CNH Industrial
– Kuhn Group
– Mahindra & Mahindra
– SAME DEUTZ-FAHR