Demand for new machinery across Europe remains strong. A regional survey has shown that each European market is expecting company turnover increases in the next six months.

Despite this, there continues to be an air of uncertainty among manufacturers as to what extent the orders can be realised against the backdrop of extreme price increases and shortages on the supplier side.

This is according to CEMA’s latest Business Climate Index market trends report, which outlines that 40% of companies recently surveyed are expecting a production stoppage due to a lack of certain parts in the coming month.

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 September report shows that 95% of participants are happy with current business, while 65% of participants expect their company turnover to grow in the next six months.

Industry is positive

The September report goes on to show that the general Business Climate Index for the agricultural machinery industry in Europe has decreased slightly for the third month in a row. After peaking in May and June at its highest level since 2008, the index declined by two points in September to 63 points (on a scale of -100 to +100). The drop is the result of some companies evaluating their current business slightly less favourably. Despite the slight drop, the industry still sees a high need for investment for almost all of Europe.

Against this background, 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 13%.