Farm and Garden Machinery and Equipment

SIC 5083

Companies in this industry

Industry report:

This industry is primarily engaged in the wholesale distribution of agricultural machinery and equipment, including devices used to prepare and maintain soil and to plant, protect, irrigate, and harvest crops. The industry also supplies equipment and machinery to dairy and livestock operations.

According to the U.S. Census Bureau, 8,018 establishments were involved in the farm and garden machinery and equipment wholesalers industry in 2009. Together these firms employed 97,898 people, which earned a total payroll of $4.2 billon. Subcategories include lawn and garden machinery, landscaping equipment, agricultural machinery and equipment, and irrigation equipment. Total industry sales reached $65 billion in 2010.

Sales of tractors and combines were up significantly in the mid-1990s. The strength of the farm economy, the rising net farm income, and a decline in the ratio of debt to assets contributed to farmers' willingness to buy agricultural equipment. However, depressed grain and livestock prices led to a decrease in North American retail demand for farm equipment at the turn of the century. Overall, since the early 1970s, the number of U.S. farms decreased one-third, from 3 million to 2.1 million.

The consumer lawn and garden products market included lawn mowers, turf and grounds equipment, garden tractors and tillers, trimmers and edgers, and show throwers. U.S. exports of lawn and garden equipment were two-thirds the value of imports, according to government statistics. The largest markets for exports were Canada, France, Germany, the United Kingdom, and Australia.

Farm machinery, equipment, and parts represented the largest segment of the industry in the early 2010s, accounting for about 60 percent of the market. Lawn and garden equipment and parts made up about 30 percent, and the remainder came from other categories. Significant product segments within the farm machinery and equipment category included new farm tractors, used farm machinery and equipment, and new harvesting machinery.

Although the farm and garden equipment wholesaling industry suffered during the economic recession at the end of the first decade of the 2000s, IBISWorld predicted a recovery in the early 2010s. According to a 2011 report, "downstream demand from the farming sector and renewed customer spending [will] stimulate revenue." Consumers' investment in home improvements was also expected to boost some sectors of the industry. Nevertheless, small companies in the industries continued to be challenged to realize a profit.

The industry was concentrated in the Plains and Southeast United States, although Texas had the most establishments in the industry, accounting for 7.5 percent of firms. Other leading states in terms of number of establishments were Wisconsin and Illinois.

This industry remained highly fragmented, with the top 50 companies accounting for 30 percent of total revenues. Leaders in the industry in the early 2010s included AGCO Corp. of Duluth, Georgia, with 2011 sales of $6.8 billion; Deere & Co. of Moline, Illinois, with $32 billion in annual sales; and Caterpillar Inc. of Peoria, Illinois, with 2011 revenues totaling $42.5 billion. These firms represented important agricultural machinery manufacturers with extensive distribution networks.

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News and information about Farm and Garden Machinery and Equipment

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