Re: what tractors will be left

Posted by wisbaker on March 31, 2018 at 21:08:15 from (173.30.37.8):

In Reply to: what tractors will be left posted by larryh on March 30, 2018 at 09:51:20:

what no one is considering is that if AGCO or CNH or John Deere "fail" there is always the potential for someone like Kubota or Mahirinda to step in and buy what's left and leverage themselves into the North American market in a big way. True farms are 10 times the size they were 50-60 years ago and logic follows that we need 10% of the equipment that we did years ago. One of the factors in a mature market is their will be 3-4 big players in the market and any more than that will be companies that have developed new technologies and innovations or efficiently exploit niche markets with technologies or products the big players aren't interested in. We reflect on the loss of many of our US companies to foreign competition but from where I see it some of that is our own fault when our tax laws don't support our companies being competitive in world markets as well as the conglomerate mentality of the 1960's where rather than getting bigger/better in the company's primary interest they divested into other fields. We also have to consider that we live in what in many industries is a one mistake environment and that one major mistake can cripple a company and they'll never recover. We also know that big companies have a lot of momentum and change and innovation can become a problem in the organization making them ripe to be picked off by smaller more nimble competitors. There are also strange things that happen, I hear that Tenneco is now basically an auto parts manufacturer OEM and aftermarket, but they started out as a gas pipeline company, they ended up owning J.I Case because controlling interest of J.I. Case were held by the Kern County Land Company and Tenneco bought Kern County Land Company with an eye towards gas and oil exploration and production on the land held by Kern County Land Company. The purchase of IH was more of an effort to build their agricultural equipment holding into something viable. But look at the results of Tenneco's IH purchase, immediately and almost overnight they became a full line agricultural implement company and picked up a dealer and distribution network that was capable of supporting many times their former production capability. On the other side of the CNH family tree we have Ford and Fiat, both large and respected industrial concerns. Ford's forte through the mid 30's was production technology, they were very good at making an awful lot of product at a cost good as or cheaper than their competitors. They were well on their way to becoming the largest until IH hit their stride and came up with innovations (row crop tractors, PTO). When International Harvester hit the market with these innovations Ford wasn't able or willing to devote the the and resources to tractors and agricultural equipment, first the development of the new car (model A) sucked up a lot of their time and money and of course the best talent they had was on that project, the great depression was causing Ford to concentrate on cars and trucks and trying to stay profitable in those markets while keeping or increasing their market share. Ford briefly retreated from the US production of tractors until they hooked up with Ferguson and took another stab at it, after the war they continued to try to build a viable farm equipment business even to the point of buying out short liners or contracting with them to Build "Ford" equipment. For reasons not totally known to us (possibly a need to concentrate on cars again) Ford sold off their agricultural equipment division to Fiat, who in turn bought up Case/International or Case/IH and merged them all together along with their European manufacturers to become a major player. So sometimes the results are products chasing capital, other times it's capital chasing products or markets

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