The general Business Climate Index for the Agricultural Machinery Industry in Europe seems to have reached its peak in the months of May and June (with highest levels since 2008). In October, the index decreased slightly for the fourth month in a row at a high level (to 59 points on a scale of -100 to +100).
Despite order books at record levels, the manufacturers continue to be faced with a very dynamic order intake. According to the survey, dealer stocks with new machines have been significantly reduced over the past months and thus may have already fallen below the optimal level in most of the markets. Likewise, the used machinery stock has been generally cleansed.
The main uncertainty at present is to what extent the orders can be realized by the manufacturers against the backdrop of extreme price increases and shortages on the supplier side. Meanwhile, 45% of the companies expect a production stop due to a lack of certain parts in the coming month. Even more critical appears the situation for combine harvester and tractor manufacturers, where three out of four are forced to temporarily stop production in the coming four weeks.
