With a record volume of accumulated incoming orders and very high levels of turnover already secured for the coming months, CEMA’s latest market trends report shows that the machinery industry in Europe is “completely in the boom”.

Each month, CEMA (the association representing the European agricultural machinery industry) carries out a survey within the European agricultural machinery industry to look at the current and future business situation.

The latest report was issued in March. It shows that the general Business Climate Index for the agricultural machinery industry in Europe has risen to a clear boom level after having reached the positive range in October for the first time since mid-2019. In March 2021, the index was at +60 points (on a scale of – 100 to +100).

This is based on a record volume of accumulated incoming orders and high levels of turnover, which has already been secured for the coming months. CEMA says only 10% of industry representatives expect their incoming orders to decline. Other than during previous upswings (eg in 2010 or 2017), the current business improvements do not lag behind improved future expectations. CEMA has said it appears the industry is continuously adjusting its future expectations to surprisingly well-performing current business and an ever-increasing order intake.

Industry representatives have further raised market expectations for most countries in Europe. The breakdown for each European market shows most survey participants are expecting turnover increases in the next six months.

With regard to the rest of the coming year, European industry representatives forecast company turnovers to increase by 8% (in December, the forecast was still at an average of 4%). The drive for this positive development is expected to come from Europe, North America and Oceania.