Despite current business across the European machinery industry reportedly continuing to be very positive, fewer manufacturers are expecting further turnover growth or an increase in orders for the coming six months.

This is according to CEMA’s latest Business Climate Index market trends report, which outlines that another uncertainty for manufacturers concerns the extent of which incoming orders can be realised against the backdrop of extreme price increases and shortages on the supplier side.

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

The association’s July report shows that more than 90% of the companies participating in the survey are complaining about supply bottlenecks.

A sizeable 36% of tractor manufacturers surveyed are expected to be forced to halt production due to a lack of certain components in the coming month.

Reached its peak

The July report goes on to suggest that the general business climate index for the agricultural machinery industry in Europe seems to have reached its peak within the past two months.

After peaking in May and June at its highest level since 2008, the index declined by four points in July to 68 (on a scale of -100 to +100).

Despite all the uncertainties, the European industry representatives remain confident of closing the year with strong results.

Looking at the year in full, the survey participants forecast their companies to achieve a turnover increase of 12%.