Farm and Garden Machinery Wholesalers NAICS 423820

Jan 6, 2026 - Pro Sales Outperforming Residential

• The Toro Company’s weaker fourth‑quarter and full‑year results highlight ongoing demand challenges across the broader garden machinery industry, particularly in the residential segment, HBS Dealer reported in December. The company’s 19% drop in quarterly net income and a 14% full‑year decline in residential sales reflect softer consumer spending on lawn equipment, an issue affecting many manufacturers reliant on mower and small‑equipment volumes. However, Toro’s ability to maintain margins, offset tariff pressures, and outperform expectations through its professional segment underscores a key industry trend: commercial and municipal buyers remain more resilient than retail consumers. Toro’s continued investment in productivity improvements and its acquisition of Tornado Infrastructure Equipment signal a strategic shift toward diversification and higher‑value industrial equipment. For the wider industry, Toro’s results reinforce a bifurcated market with residential demand under pressure, while professional and infrastructure‑oriented segments offer more stable growth and margin opportunities.
• Artificial intelligence presents opportunities and risks for distributors of farm and garden equipment and their customers, Farm Equipment reports. A focus group of dealers convened by FE saw AI as a tool to streamline operations, from helping overworked service technicians troubleshoot equipment problems faster to improving inventory management and triaging customer calls. These applications could significantly reduce downtime and enhance customer service in wholesale distribution. However, FE warns of risks tied to open-source AI, in particular the potential for sensitive dealership and customer data to be exposed or misused. Moreover, dealers asked about their use of AI emphasized the importance of maintaining the human touch in customer relationships, a cornerstone of a relationship business like farm and garden equipment distribution. Wholesalers must adopt policies that balance innovation with privacy protections and ensure AI complements, not replaces, the personal trust that drives long-term customer loyalty.

• Off-season equipment maintenance of farm equipment like tractors and combines drives demand for farm machinery services and parts, creating key revenue opportunities for farm equipment wholesalers, Farm Progress reported in November. Dealers like Messick’s Farm Equipment incentivize farmers with off-season discounts, encouraging early repairs and tune-ups. A proactive approach increases sales of wear-and-tear components such as cutter knives, bearings, and filters. Wholesalers also gain from the growing complexity of modern machinery, which requires specialized parts and software updates. Strong dealer-farmer relationships highlight the importance of reliable parts availability and responsive service. Overall, off-season care not only ensures equipment readiness for both farm and landscaping equipment but also sustains a steady revenue stream for wholesalers during the slower winter months.
• The producer price index for machinery and supply wholesalers, a measure of input costs, rose 3.5% in September compared to a year ago after increasing by 2.1% in the previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by farm and garden machinery and equipment merchant wholesalers shrank 6% year over year in August, while the average industry wage rose 5% over the same period to a new high of $32.49 per hour, BLS data show. Employment and wages at farm and garden machinery wholesalers moved in opposite directions in 2025 as companies looked to control labor costs. Sales for the US farm and garden machinery wholesalers industry are forecast to grow at a 3.88% compounded annual rate from 2025 to 2029, slower than the growth of the overall economy, according to the latest forecast by the Interindustry Economic Research Fund.