As one of the most important foundational components of any economy, agriculture regularly benefits from consistent growth and profitability. Even following the complexities of 2020, agricultural companies continue to thrive, looking ahead to a profitable future. According to Mordor Intelligence, the global agricultural market (valued at $138.59 billion in 2020), will reach a value of $194.94 billion by 2016, with a CAGR of 5.4%.
Examinations of the equipment market by the AG Equipment Intelligence report found investment in new and used equipment has continued to grow since the pandemic, driven by the continued demands of an expanding population. For innovators capable of reaching the right marketplace, the industry of agricultural machinery could promise incredible gains.
What’s Nurturing Growth in Agricultural Equipment?
Allied Market Research found the agricultural equipment market’s strength is dependent on a range of factors, including an increased requirement for reduced human labor on farms. The rising mechanization of various common farming activities is expected to boost demand for agricultural equipment in the years ahead. Even smaller companies and groups are recognizing the cost-saving and labor-reducing benefits of owning the right technology.
Furthermore, developed and developing nations are increasingly setting goals to increase food production by up to 70% by the time we reach 2050. The need to a higher yield among farmers has also prompted the increase of subsides and loan schemes for farmers and agricultural experts in need of new vehicle technology for faster harvesting.
However, as in most sectors, there are greater opportunities in some aspects of the agricultural equipment space than in others. Lack of access to the cored resources and issues with budget have prevented many farming groups to make the right purchases in the last couple of years. While surveys show an increase in the number of businesses finding cash for new equipment purchases, additional sales avenues are available for vendors capable of selling second-hand tools.
Second-hand equipment sales could rise even more than expected in the years ahead, as pandemic-stricken agricultural groups and farms look for opportunities to save expenditure on the tools they need. In 2020, experts could already see a rising sense of positivity towards used equipment opportunities, leading to higher sales forecasts for 2021. Overall, 47.2% of dealers said they expected increased interested in used equipment during 2021.
Enabling the Future Agricultural Sector
For companies in the agricultural machinery environment, it seems unlikely desire for new technology will fall in the years ahead. Agricultural machinery, from harvesting and forage tools to irrigation systems, continues to be an essential component in keeping countries running even during difficult economic periods. However, used machinery could represent a more appealing entry point for companies with limited budgets in the post-pandemic world.
According to many experts, agricultural groups and farms in the US will largely be turning to the machinery market to tackle issues with high labor scarcity. The average farm wages in the US, according to the USDA, increased by 10.5% in four years between 2014 and 2018, and prices for skilled employees continue to increase. More than 40% of the farmers facing the labor crunch in California in the past five years have turned to mechanization for a solution.
The average size of farms across the United States is growing too, prompting a need for machinery to help with the management of larger, more complex spaces. Access to used machinery will allow farms of all sizes, with all kinds of budgets, to unlock the kind of technology they need to enhance the performance of the modern workforce and accomplish greater yields.
Embracing New Agricultural Opportunities
US dealers have a lot to be optimistic about in the future of agricultural farm equipment revenue. In 2020, around 45.1% of used equipment manufacturers expected the revenue from their sales to go up in 2021, and as demand grows, positivity is thriving among sellers.
To leverage the benefits of a rapidly growing market for agricultural machinery, vendors need access to the right go-to-market strategies. Notably, as companies in agriculture continue to invest in technology to improve the growth of their business, they’re also relying more on technology for the shopping and transaction experience too.
Approximately 75% of today’s B2B business leaders are managing the majority of their purchases online. Though ecommerce first found its fame as a business to consumer solution, B2B buyers are now demanding the same quality of fast-paced, convenient, digital interactions. This means today’s machinery sellers need to list and sell their products online to serve a new audience. Without your own ecommerce solution, you could be missing out on an incredible chance to unlock new profit in the agricultural space.
Those with their eye on the future of B2B transactions could even consider getting involved with the creation of their own marketplace environments. Building an online marketplace for used agricultural equipment would put your business at the front of the queue for customers searching for a more convenient consumer-inspired buying experience.
Make sure you’re ready to nurture your agricultural equipment business for growth, with the right digital support from Souqbox. We can help you to design your own B2B ecommerce website or build a comprehensive marketplace to suit your customers. Your sales revolution starts here.