TMA flags machinery price increases in Australia as supply challenges remain

Melody Labinsky
By Melody Labinsky
Updated May 10 2022 - 2:09am, first published 2:00am
Tractor sales varied greatly between the states in April, according to the Tractor and Machinery Association of Australia.

Australian machinery prices are increasing as manufacturers struggle to absorb the increased factory and operating costs of the past two years.

Tractor and Machinery Association of Australia executive director Gary Northover said on top the challenges associated with getting machines, most of its members were reporting solid price increases.

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"Of particular note is the supply of steel, with Ukraine reportedly responsible for a large share of the world's production being severely impacted, leading to price increases across the board," Mr Northover said.

Tractor sales in April were down three per cent compared to the year prior and have fallen 11pc behind for the year-to-date.

However, Mr Northover said this was still a strong level of sales for the industry.

"Demand for agricultural machines is presently very strong worldwide and here in Australia with the temporary full expensing program set to run until June 2023, along with continued demand for Australia's farming produce, we expect activity to remain strong," he said.

"Indeed, a recent survey of dealers has found that the majority expect turnover to remain unchanged for the outlook period."

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In Queensland, sales were up 12pc to finish 1pc behind for the year-to-date.

Mr Northover said this result occurred as a result of deliveries delayed in March due to the inclement weather taking place.

Victorian sales increased 19pc on April 2021, due in large part to the supply of small horsepower units, and sit 4.2pc behind for the year-to-date.

NSW sales dropped 21pc for the month to sit 13pc behind last year.

Sales in Western Australia dipped 5pc for the month to settle 27pc behind for the year-to-date.

South Australian April sales fell 8pc, Tasmania was down 15pc and sales in the Northern Territory dropped 21pc.

The under 30 kilowatt (40hp) category recorded a strong month, up 20pc to finish 2pc behind for the year-to-date.

Sales in the 30 to 75kw (40 to 100hp) range were up 3pc for the month to remain 2pc ahead for the year-to-date, while the 75 to 150kw (100 to 200hp) category was down 18pc.

In the large 150kw (200hp) plus range sales were down 15pc and are sitting 33pc behind for the year-to-date.

Mr Northover said the big end of the tractor range was experiencing the worst of the supply chain delays, with members reporting lengthy lead times out of factories due to everything from steel supply to the ongoing shortage of computer chips.

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While harvester sales are yet to commence for the year, he said dealers were reporting healthy pre-order interest, indicating another strong year of sales.

Baler sales fell in April and are down 20pc compared with last year, while sales of out-front mowers finished down a hefty 44pc.

Melody Labinsky

Melody Labinsky

National machinery and agtech writer

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