Agritech Business Barometer Survey - Agrievolution

Agrievolution Economic Committee

Agritech Business Barometer Public report of the survey about the worldwide situation of the agricultural machinery business May 2013 7th edition

Contact: [email protected]

Page 1 • May 2013


What is the Agritech Business Barometer? 

A survey within senior management of the global agricultural machinery industry (ca. 85% manufacturers and 15% importers)



Project managed under the umbrella of the new global network for the agricultural machinery associations and industry: Agrievolution



Around 200 participants from Brazil, Western Europe (represented by CEMA with the results of its separate monthly survey), Japan, India, South Korea, Turkey and the United States



Implementation of the survey by the correspondent national associations



Project lead and summary of the results: VDMA (Germany)



Objectives: illustration of the current and future branch development for the most relevant topics of the industry        



General evaluation of the business Order intake Turnover Employmenent Delivery times Machinery stocks Farmers´ mood and economic conditions Others

Survey periods: April and October (Start was in 2010)

Contact: [email protected]

Page 2 • May 2013


Executive Summary of the survey April 2013  Rise of the business climate index by 10 points due to positive outlook 

Much better evaluation in Japan, further increase in Brazil

 Stagnating global turnover development over the past 3 months 

Increase in Brazil and India



Decrease in Western Europe and Turkey

 Comparably low delivery times for new machines  Second hand machinery markets have become bigger in the USA and Korea  Higher order intake for the manufacturers in most regions over the past 3 months  Production capacities fully employed for 3.2 months ahead  Financing restraints for farmers and machinery distributors in India, Turkey, Korea and some European countries  Government programs currently support the markets especially in Brazil, Japan and India Contact: [email protected]

Page 3 • May 2013


Global evaluation of the current business remains very positive Question: We consider our current business to be …. Answers from manufacturers / importers according to location

100%

2

6

6

12

2

2

1

14

17

17

22 80%

25

34

26 unfavourable

31 36

60%

39

44 40%

satisfying 49 46

41

35

good 40

20%

24 15

0%

very unfavourable

3 Apr 10

19 8 Oct 10

Apr 11

Source: Agritech Business Barometer, Agrievolution Contact: [email protected]

16 Oct 11

39 very good

18 Apr 12

5

4

Oct 12

Apr 13 weighted global average Page 4 • May 2013


Less regional difference of the satisfaction level Question: We consider our current business to be …. Answers from manufacturers / importers according to location 100% 18

23

19

18

32

1

2

5

22

17

17

very unfavourable

80% 23 33 39

60%

43

46

40%

unfavourable

satisfying

67

53 77 55

good

42 39

20%

35

32

very good

11

0%

Japan

5

5

Korea

India

11

Turkey

Western Europe

Source: Agritech Business Barometer Survey April 2013, Agrievolution Contact: [email protected]

Brazil

8

USA

4

World* * weighted global average Page 5 • May 2013


Short term growth expectations are dominant in all regions Question: We expect our overall turnover within the next 6 months to … Answers from manufacturers / importers according to location 100% 16

14

23

14 27

26

25

80%

decrease 50 32

40 25

60% 36

40%

remain unchanged

44

86 77 53

20%

50

50

Brazil

USA

grow

46

36 29

0%

Japan

Korea

India

Turkey

Source: Agritech Business Barometer Survey April 2013, Agrievolution Contact: [email protected]

Western Europe

World*

* weighted global average Page 6 • May 2013


Global business climate index rises by 10 points due to better future expectations Agritech Business Climate Index Possible range from -100 to +100

80 60 40 20 0 Climate Index

-20

Current Situation Future Situation

-40 Climate Index Current Situation Future Situation

Apr 10 1 -23 26

Oct 10 34 8 61

Source: Agritech Business Barometer, Agrievolution Contact: [email protected]

Apr 11 65 60 71

Oct 11 44 49 38

Apr 12 35 37 33

Oct 12 19 25 13

Apr 13 29 25 33

weighted global average Page 7 • May 2013


All country indices have become positive, sector has come out of recession in Japan Agritech Business Climate Index Possible range from -100 to +100

Apr 10

Oct 10

Apr 11

Oct 11

Apr 12

Oct 12

Apr 13

100 80 60 40 20 0 -20 -40 -60 -80 Japan

Korea

India

Source: Agritech Business Barometer Survey, Agrievolution Contact: [email protected]

Turkey

Western Europe

Brazil

USA

World*

*weighted global average Page 8 • May 2013


Employment in the sector will be increased globally Question: Our plans regarding the workforce (regular employees): in % of the interviewed persons according to country of company location

5

8

6

10 22

reduce 58 79

77

33

73

75

68

79

keep unchanged

44 17

21

Japan

Korea

23

42 26

23

increase

11 India

Turkey

Source: Agritech Business Barometer April 2013, Agrievolution Contact: [email protected]

Western Europe

Brazil

USA

World*

* weighted global average Page 9 • May 2013