550 units is the estimate by Power Systems Research of the number of Harvesters to be produced in North America in 2021. This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: Dominating the NA market for Harvester production is Deere with 50.5% of total units produced. In second position with combined plant total of 20% is Oxbo “International; third is Flory with 13%.
Trends: In 2020, production of Harvesters in NA decreased 17%. Production is expected to increase 19% in 2021 over 2020. The Ag industry has fluctuated over the years and demand for new products has declined. Due to falling commodity prices in recent years, farmers/cultivators can’t afford new equipment and have spent years of refurbishing existing units.
Uncertainties of COVID-related factors led farmers to avoid spending nominal profits on new machinery. Over the past several years, the dramatic fall in net farm income in 2015 and 2016 seems to be leveling out at a lower level. However, America’s farmers are enduring the impact of a continuation of the current trade war with China.
On the flip side, the harvester production increase is attributed to the desire for new machines to increase productivity and to end up with a profitable yield. Expect production to fluctuate over the next 3-5 years with a slight gain of 5% by 2025. PSR
Carol Turner is Senior Analyst, Global Operations, at Power Systems Research
