Deere CaseNew Holland CNH and Agco are Some of the Leading Manufactures in the Farm Equipment Industry



Research and Markets (http://www.researchandmarkets.com/reports/c35408) has announced the addition of Farm Equipment Manufacture - Industry Profile to their offering

Brief Excerpt from Industry Overview Chapter:
In the US, about 1,200 companies manufacture farm machinery and equipment, with total annual revenue of $15 billion. Large manufacturers, including Deere; Case-New Holland (CNH); and Agco, have worldwide operations. The industry is highly concentrated: the 20 largest companies hold over 80 percent of the market.

Sales are directly tied to farm income and crop production projections for the next season, and can vary highly year to year. The profitability of individual companies depends on the volume of products sold, since many manufacturing costs are fixed. Big companies have large economies of scale, especially in manufacturing tractors and combination machines. Small companies can be successful by making specialized equipment, especially tractor attachments. Smaller companies, which are more labor-intensive, produce annual revenue per employee of about $150,000. Larger companies, more capital-intensive, produce about $350,000 per employee.

Major products are tractors; self-propelled harvesting combines; tractor attachments; and other equipment used for crop production and farm animal management. Smaller utility and all terrain vehicles (ATVs) are coming into general use on farms. Tractors account for about 30 percent of the market, combines 25 percent.

Large companies, such as John Deere, Agco, and CNH, produce a full array of products, while smaller companies generally make a single product line. Production of diesel engines is the major separator between large and small companies, because of the large amounts of capital and expertise required.

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Deere CaseNew Holland CNH and Agco are Some of the Leading Manufactures in the Farm Equipment Industry