Demand for new machinery throughout Europe is remaining very strong with manufacturers’ order books currently running at record levels.

Despite the positivity in the industry, European manufacturers are saying they are faced with a current uncertainty as to what extent these orders can actually be realised. This stark reality comes against the backdrop of extreme price increases and component shortages on the suppliers’ side.

This is according to CEMA’s latest Business Climate Index market trends report, which outlines that 45% of the companies it surveyed across Europe expect a production stoppage due to a lack of certain parts in the coming month.

Even more critical is the situation for tractor and combine manufacturers, with the association outlining that three out of every four such manufacturers surveyed have said they will be forced to temporarily stop production in the coming four weeks.

This demand for new machinery across Europe follows on from the significant reduction of dealer stock over the past number of months.

CEMA noted that new machine stock in dealers’ yards may have already fallen below the optimal level in most of the markets. Likewise, the used machinery stock has been generally sold out which is adding to the demand.

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 October report shows that 96% of participants are happy with current business, while 63% of participants expect their company turnover to grow in the next six months.

The October report shows that the general Business Climate Index for the Agricultural Machinery Industry in Europe has decreased slightly for the fourth month in a row. After peaking in May and June at its highest level since 2008, the index further declined by four points in October to 59 points (on a scale of -100 to +100).

The association outlined that three out of every four tractor and combine manufacturers surveyed have said they will be forced to temporarily stop production in the coming four weeks.