Farm Machinery Manufacturers NAICS 333111

Mar 23, 2025 - Falling Sales and Shipments

• Producer prices for farm machinery manufacturers inched up 0.9% in December compared to a year ago after rising 1.3% in the previous December-versus-December annual comparison, according to the latest US Bureau of Labor Statistics data. Producer prices have held relatively stable amid a sharp decline in shipments of farm machinery and equipment since August and declining machinery sales, Census Bureau data show. Employment by farm machinery manufacturers shrank 4.8% year over year in January, while average industry wages increased 7.3% over the same period to $30.86 per hour. Falling crop prices and rising input costs are causing US farmers to cut back on spending, sending the broader US agricultural sector into a tailspin.
• Concerns over the high cost of new farm equipment are leading many growers to shift their replacement strategies, with some opting to extend the lifespan of their current machines, while others are investing in late-model, low-hour used equipment through auction or dealer channels, Farm Equipment reported in March. Leasing activity also began increasing in the second half of 2024 as producers began exploring methods to reduce equipment costs. With farm incomes projected to be lower this year and prices for new machinery high, strong demand for used equipment is expected to persist. “Producers may take a wait-and-see approach in the first half of 2025, potentially delaying equipment upgrades as the spring planting season approaches,” Lucas Scheibe, an AgDirect territory manager in North Dakota told FE, adding “However, if policy and tax conditions remain favorable, improved commodity prices could bolster farm income and influence buying decisions."

• US manufacturers have much to lose if a trade war erupts between the US and its largest trading partner Mexico, The New York Times reports. President Trump has vowed to slap 25% tariffs (or higher) on all goods from Mexico unless it stops the flow of migrants and drugs to the US. While Mexico depends heavily on trade with the US – exporting some 80% of its goods to America – it accounted for nearly 16% of overall US exports in 2022, according to the Office of the US Trade Representative. Tariffs on Mexico and China, another Trump target, would have widespread ramifications for manufacturers, making it more expensive to produce goods that use foreign components. And if other countries respond with retaliatory tariffs, it could also make it more expensive for manufacturers to export goods to foreign markets, according to Manufacturing Dive.
• Farm machinery giant John Deere is among those companies backing away from diversity, equity, and inclusion (DEI) efforts amid a backlash from conservatives, CNN reports. Last July, the company announced it would no longer sponsor “social or cultural awareness” events, becoming the latest major US company to distance itself from DEI measures after being targeted by conservative activists. The company also posted a statement on “X” (formerly Twitter) saying it would audit all training materials “to ensure the absence of socially-motivated messages” in compliance with federal and local laws. In response, the president of the National Black Farmers Association, John Boyd, Jr., called for the resignation of Deere’s CEO and a boycott of the company. Deere’s DEI retreat followed retailer Tractor Supply’s announcement in June that it would withdraw its carbon emission reduction goals and eliminate jobs and goals focused on DEI.