Based on a record volume of accumulated incoming orders and very high levels of turnover already secured for the coming months, CEMA’s latest Business Climate Index (BCI) market trends report shows that the machinery industry in Europe has risen to a 10-year high.
Each month, CEMA (the association representing the European agricultural machinery industry) carries out a survey within the European agricultural machinery industry with coverage of all major sectors to look at the current and future business situation.
The association’s April report shows that the general Business Climate Index for the agricultural machinery industry in Europe has risen to its highest level since 2011 after having reached the positive range in October for the first time since mid-2019.
In April 2021, the index is at +66 points (on a scale of -100 to +100).
The association says these findings are based on a record volume of accumulated incoming orders and very high levels of turnover which have been secured for the coming months.
Moreover, it noted that only 3% of the industry representatives expect their incoming orders to decline, in comparison to 10% last month.
The regional breakdown shows that each single European market a majority of survey participants are expecting turnover increases in the next six months
CEMA noted that other than during previous upswing periods (for example, in 2010 or 2017), the current business improvements do not lag behind improved future expectations.
The firm added that it appears that the industry is continuously adjusting its future expectations to a surprisingly well-performing current business and to an ever-increasing order intake from month to month.
With view to the market side in Europe, CEMA say that industry representatives have again further raised their expectations for most countries.
The regional breakdown shows that each single European market a majority of survey participants are expecting turnover increases in the next six months.
Accordingly, dealer stocks with new machines have been significantly reduced over the past months and may have already fallen below the optimal level in some markets.
Meanwhile, CEMA have also noted that used machinery stock has been generally cleansed (less for combine harvesters).