Exports of U.S.-made agricultural equipment were down 14% overall for the first three quarters of 2016 compared to 2015 January – September, for a total $5.1 billion shipped to global markets.
Europe and Central America continued to be the growth leaders with Asia leading the double-digit declines for the other world regions, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data it uses in global market reports for members.
“In the third quarter of 2016, U.S. agriculture equipment exports to the world continue to decline, and the year-over-year third-quarter exports were lower than year-to-date, with a 17.6% Y/Y decline, the highest Y/Y quarterly decline this year so far,” said AEM’s Benjamin Duyck, director of market intelligence.
“The ag equipment industry continues to suffer from a global ag downturn in large part due to low commodity prices. While some countries might benefit from their higher commodity production levels, the U.S. manufacturers are watching from the sidelines as a strong dollar is making them less competitive in the global marketplace. Of course, the strong currency is a problem that plagues all U.S. exports,” Duyck added.
“Our expectations for the fourth quarter remain subdued as the U.S. dollar is experiencing its longest rally in 16 years,” Duyck stated. “With the global economic malaise, the slowdown in emerging markets and the negative interest rates seen in several economies’ bond markets, investment is flowing to the U.S. and U.S. stocks, driving up demand for our dollar, inadvertently affecting our competitiveness abroad.”
Exports by world region
January-September 2016 U.S. agricultural equipment exports by major world regions compared to January-September 2015:
- Canada dropped 15%, for a total $1.5 billion
- Europe gained 4%, for a total $1.2 billion
- Central America gained 16%, for a total $978 million
- Asia fell 44%, for a total $440 million
- Australia/Oceania fell 30% for a total $395 million
- South America dropped 28%, for a total $374 million
- Africa decreased 21%, for a total $160 million
Exports by Top 10 countries
The top countries buying the most U.S.-made agricultural machinery during the first three quarters of 2016 (by dollar volume) were:
- Canada - $1.5 billion, down 15%
- Mexico - $873 million, up 19%
- Australia - $353 million, down 29%
- Germany - $185 million, up 0.2%
- China - $156 million, down 66%
- France - $128 million, down 10%
- Ukraine - $123 million, up 244%
- Brazil - $115 million, down 33%
- South Africa - $91 million, down 30%
- United Kingdom - $89 million, down 32%