A survey by the European CLIMMAR Dealer Association showed that about 80% of companies specializing in the sale of agricultural machinery and equipment are experiencing the negative effects of the pandemic. The greatest difficulties are noted in the sector of the sale of new equipment. At the same time, at least 70% of participants believe that in the next two months the situation will only worsen.
In total, at least 660 dealerships from 14 countries took part in the survey. The study shows that the effects of the COVID-19 crisis are strongly felt by dealer companies and distributors in the European agricultural machinery and equipment sector. About 80% of respondents experience “quite serious” consequences. There are also difficulties in the used car sales sector, but to a lesser extent than in the sales of new cars.
The consequences of the crisis for service centers are less significant. This is partly due to the fact that spring field work was carried out in full. Accordingly, the centers received orders for repair and maintenance of the machines involved.
In general, about 45% of dealership companies say that they will likely need financial support to survive the crisis. At the same time, 13% of companies clearly indicate that they do not need assistance measures and can do without them.
When asked what kind of assistance measures are needed, most of the companies answered that they would like to get a bank loan on acceptable terms, as well as support from machine manufacturers.
The outlook for the coming months is pessimistic. More than 70% of companies said they expect a decrease in demand for their products, and about 16% of companies believe that the decline will occur by more than 25%.
According to the press service of CLIMMAR