After the extraordinary year of 2020, a complete respite is hard to expect. This year too, the agricultural machinery industry will not avoid the negative consequences of the pandemic, especially due to the delayed supply of components. Despite this, the agricultural machinery markets are seeing an improving situation.
According to data from CEMA (the European Agricultural Machinery Manufacturers’ Association), the market barometer is showing positive trends. Since the low point recorded in April 2020, signs of recovery in the industry have been increasing steadily, reaching a peak today. According to a survey of manufacturers, the pandemic has had no significant impact on the agricultural machinery industry. Three-quarters of those surveyed view their current situation as very positive and expect sales to rise. So far, there are no signs of a downturn. The European agricultural machinery market is forecast to grow by 7.1% this year.
Fendt, a company belonging to the AGCO concern, also expects positive results this year. „We have been living in a pandemic for 17 months; none of us could have predicted what we would all have to experience. Naturally, this unusual situation has affected us all, especially international supply chains,“ emphasised Christoph Gröblinghoff, Chairman of the AGCO/Fendt Board, at the Fendt innovation presentation conference.
According to him, Fendt has managed to react quickly to these constantly changing challenges so far and has compensated for production days lost due to restrictions and disrupted spare parts supply. „However, there is no time to relax; we will be working and living under pressure for some time,“ is convinced Ch. Gröblinghoff. Overall, he views the current situation positively, both at Fendt and in agriculture: ‘The industry is „healthy„, order books are full, and agricultural product prices are favourable for farmers, meaning there is money available for investment.“
According to his estimates, the European tractor market is expected to reach 188,000 new tractors this year, which is almost the same as the record figure achieved in 2012. „We have secured a market share of more than 10 per cent in Europe, excluding Turkey. Compared to last year, the global market for Fendt tractors is also growing. We expect over 20,000 tractors to be manufactured this year,“ said the Chairman of the AGCO / Fendt Board, sharing his plans.
According to him, Fendt continues to grow. The company employs around 6,300 people across all six German production sites (Marktoberdorf, Asbach-Bäumenheim, Waldstetten, Feucht, Hohenmölsen and Wolfenbüttel). That's over 300 more than in the same period last year. More than 4,000 people work at the main headquarters in Marktoberdorf alone. A new research and development centre was opened in Marktoberdorf this April, to which the entire team of creative engineers has been relocated.
Lately, an increasing amount of attention has been paid to digital technologies in the development of new and improvement of existing products. „Innovative technologies are our core competence. In total, around 500 engineers work at Fendt, developing both new machinery and new digital technologies,” says the CEO of Fendt. The new research and development centre has around 140 new jobs for specialists in the fields of electronics, software, and digitisation. In his opinion, agriculture is on the verge of major changes, and it is likely that we will see a complete transformation of agricultural production in the near future. „I am thinking of digital and autonomous systems, the use of alternative fuels, and sustainable farming technologies that give production even greater efficiency. We are undoubtedly part of this major digital revolution,“ emphasised Ch. Gröblinghoff.
Prepared according to PROFI Lithuania or AGCO Corporation material.
