The demand for European manufactured agricultural machinery is on the up, and is currently at its highest since mid-2023, according to CEMA’s latest report. After a difficult 24 months for manufacturers in 2023 and 2024, CEMA explains that the average European manufacturer lead time now corresponds to a production period of 3.3 months. The association notes that this is the lowest value since 2020 at this point of the year, but still slightly above average compared to the typical years before 2020.
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.
Within each month’s report, the association publishes a general business climate index for the agricultural machinery industry in Europe.
In the association’s May report, it noted that the general business climate index for the agricultural machinery industry in Europe has continued its upward path, after its return to positive territory last month for the first time since mid-2023.
In May, the index increased from +2 points to +7 points (on a scale of -100 to +100).
Following the improved evaluations of the (still negative) current business in recent months, it is this time once again increased overall turnover expectations that have driven the upturn in the general business climate.
A large factor playing into the positivity from manufacturers has been the large clear out of record-high dealer stock levels which many have been carrying over the past two years.
CEMA notes that this has resulted in current stocks now being below the average comparison with the past three years, across all European markets.
US tariffs
The direct effects of the current US economic and tariff policy on the business and decisions of manufacturers in Europe are, according to industry representatives, low or still difficult to assess. Two thirds of survey participants do not yet see any effects on their order intake.
Not even 10% of the respondents (slightly more for parts) consider it as likely to move production from Europe to the USA or to reorient their exports due to tariffs.
Future
A total of 63% of survey respondents consider the current business to be satisfying to very good, up from 57% in March. Looking towards the next six months, 45% of manufacturers now expect their overall turnover to grow. The overall picture from the survey is that the European machinery industry is on the rise again.
A total of 63% of survey respondents consider the current business to be satisfying to very good.
The demand for European manufactured agricultural machinery is on the up, and is currently at its highest since mid-2023, according to CEMA’s latest report. After a difficult 24 months for manufacturers in 2023 and 2024, CEMA explains that the average European manufacturer lead time now corresponds to a production period of 3.3 months. The association notes that this is the lowest value since 2020 at this point of the year, but still slightly above average compared to the typical years before 2020.
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.
Within each month’s report, the association publishes a general business climate index for the agricultural machinery industry in Europe.
In the association’s May report, it noted that the general business climate index for the agricultural machinery industry in Europe has continued its upward path, after its return to positive territory last month for the first time since mid-2023.
In May, the index increased from +2 points to +7 points (on a scale of -100 to +100).
Following the improved evaluations of the (still negative) current business in recent months, it is this time once again increased overall turnover expectations that have driven the upturn in the general business climate.
A large factor playing into the positivity from manufacturers has been the large clear out of record-high dealer stock levels which many have been carrying over the past two years.
CEMA notes that this has resulted in current stocks now being below the average comparison with the past three years, across all European markets.
US tariffs
The direct effects of the current US economic and tariff policy on the business and decisions of manufacturers in Europe are, according to industry representatives, low or still difficult to assess. Two thirds of survey participants do not yet see any effects on their order intake.
Not even 10% of the respondents (slightly more for parts) consider it as likely to move production from Europe to the USA or to reorient their exports due to tariffs.
Future
A total of 63% of survey respondents consider the current business to be satisfying to very good, up from 57% in March. Looking towards the next six months, 45% of manufacturers now expect their overall turnover to grow. The overall picture from the survey is that the European machinery industry is on the rise again.
A total of 63% of survey respondents consider the current business to be satisfying to very good.
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