The first three quarters of the year show a 14 percent drop in U.S. agriculture equipment exports compared to the same time frame in 2015. That’s a difference of more than $5 billion, says the Association of Equipment Manufacturers (AEM).
Europe and Central America continued to be the growth leaders with Asia leading the double-digit declines for the other world regions, according to AEM, citing U.S. Department of Commerce data it uses in global market reports for members.
“In the third quarter of 2016, U.S. agriculture equipment exports to the world continue to decline, and the year-over-year third-quarter exports were lower than year-to-date, with a 17.6 percent Y/Y decline, the highest Y/Y quarterly decline this year so far,” reports Benjamin Duyck, director of market intelligence.
“The ag equipment industry continues to suffer from a global ag downturn in large part due to low commodity prices. While some countries might benefit from their higher commodity production levels, the U.S. manufacturers are watching from the sidelines as a strong dollar is making them less competitive in the global marketplace. Of course, the strong currency is a problem that plagues all U.S. exports.
“Our expectations for the fourth quarter remain subdued as the U.S. dollar is experiencing its longest rally in 16 years. With the global economic malaise, the slowdown in emerging markets and the negative interest rates seen in several economies’ bond markets, investment is flowing to the U.S. and U.S. stocks, driving up demand for our dollar, inadvertently affecting our competitiveness abroad.”