My thoughts in no particular order. I think that Deere will be the last to be jeopardized due to in part its financial arm. That took the company through the tough 1980's and for this area the tough 1990's. They all are faced with too much production capacity and may be wishing for the days of smaller farms where larger volumes of equipment were sold to more customers. I think that there is a critical mass in terms of hours of production to keep factories profitable and shrinking volumes of equipment no matter how valuable per piece will jeopardize a company's ability to run it. CNH has a serious obstacle ahead as the heady times now behind raises the question of dealer reduction or consolidation as the NH and Case IH product lines overlap heavily. Farmers have gotten used to the changing dealer environment but a 40-50 reduction in dealer locations might result in a backlash. From where I am sitting I don't see AGCO as positioned to grow and through dealer closings is facing a major challenge in getting representation on a local level. Do they take a chance on selling on the internet and have contractor type service providers such as it was 80-100 years ago where one person would sell and another company services? Kubota? I think that they caught the big manufacturer wave too late and I can see through area dealers that the volume appears heading down. For many people a CUT or Gator-type vehicle is a once in a 20 year type investment as opposed to a car or truck. Deere is better positioned in the consumer product market as it has lower priced merchandise to reach a wider segment of the North American market.
The day that Deere is sold or turns to the government for money is a day we should all dread as it will speak more to the condition of the rural economy and small town consumer rather than being its own victim of big pants syndrome.
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Today's Featured Article - A Lifetime of Farm Machinery - by Joe Michaels. I am a mechanical engineer by profession, specializing in powerplant work. I worked as a machinist and engine erector, with time spent overseas. I have always had a love for machinery, and an appreciation for farming and farm machinery. I was born and raised in Brooklyn, New York. Not a place one would associate with farms or farm machinery. I credit my parents for instilling a lot of good values, a respect for learning, a knowledge of various skills and a little knowledge of farming in me, amo
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