The total economic value of the farm machinery sector to the Irish economy is €4.76bn annually, according to an economic report on the value of the machinery industry in Ireland.

The report was compiled by the Farm Tractor and Machinery Trade Association (FTMTA), in partnership with ifac.

The report outlines that this figure of €4.76bn represents the combined value of direct sales, supply chain effects and additional consumption expenditure driven by wages earned in the sector and its supply chain.

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The farm machinery sector directly employs 14,926 people, with an additional 9,703 people indirectly employed, combing to total almost 25,000 jobs. The sector’s total direct output is estimated at €2.57bn annually, which includes new and second-hand machinery sales, domestic manufacturing, imports, exports, spare parts and after sales services.

For every €1 of direct sector output, an additional €0.85 circulates through the Irish economy. The Government tax take from the sector is estimated to be a staggering €226m annually.

In terms of machinery exports, the report places an annual value of over €700m on international exports from the farm and machinery sector. The Irish farm machinery manufacturing sector exported to 61 countries in 2024.

Increased costs

The report outlines that the cost of doing business is around 37% higher as compared to early 2021.

Looking at the costs of running a business since 2020, the report notes that labour has risen by 28%, electricity costs have risen by 68%, gas prices have risen by 75%, raw materials with a focus on steel, has increased by 125%, transport costs have gone up by 40%, insurance costs are up 13% and interest rates are up by 75%.

Current market

The report included a survey of the FTMTA’s members, with 53% describing the current business environment as positive, while 56% described business sentiment as improved over the last 12 months.

A total of 51% of member respondents anticipate an increase in turnover in 2026, while 67% of survey respondents have indicated plans for significant investment, either currently under way or scheduled to begin within the next year.

Only 39% of respondents outlined that they have a clear succession plan in place for the businesses that they manage, with 25% not having any plan in place.