Price rises and shortages of components have been creating bottlenecks in the machinery manufacturing sector for some time, but are now finally starting to ease, according to CEMA’s latest market trends report.

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 June report states that the outlook from European industry representatives has improved slightly for the first time since its sharp decline in the first few months of the Russian war against Ukraine.

In particular, it says that expectations for the coming six months have improved again. This follows last month’s report outlining that the volume of orders in front of manufacturers is currently running at a production period of six months, slightly below the all-time high recorded within its monthly report.

Temporary production stop

CEMA adds that “only” 35% of the companies it surveyed are planning a temporary production stop due to shortages in the coming four weeks. This is down from nearly half of the companies it surveyed in May that were planning to temporarily halt production due to a shortage of certain components at that time.

The association says that the market side as a whole appears solid from the perspective of manufacturers.

The regional breakdown continues to show the majority of survey participants expecting turnover increases in the next six months, except for eastern Europe.

According to the survey, current dealer stocks of both new and used machinery remain very low across Europe and may even have fallen below optimal levels in most markets.

Price rises and shortages of components have been creating bottlenecks in the machinery manufacturing sector, but are now finally starting to ease, according to CEMA.

This follows last month’s report outlining that the volume of orders in front of manufacturers is currently running at a production period of six months, slightly below the all-time high recorded within its monthly report.

CEMA adds that “only” 35% of the companies it surveyed are planning a temporarily production stop due to shortages in the coming four weeks. This is down from nearly half of the companies it surveyed in May that were planning to temporarily halt production due to a shortage of certain components at that time.

The association says that the market side as a whole appears solid from the manufacturer’s perspective.

The regional breakdown continues to show the majority of survey participants expecting turnover increases in the next six months, except for eastern Europe.

According to the survey, current dealer stocks of both new and used machinery remain very low across Europe and may even have fallen below optimal levels in most markets.