European dealers of agricultural machinery felt the effects of the COVID-19 crisis

CLIMMAR, the international distributors’ network of 16 national associations and their member companies in the Agricultural Machinery and Equipment sector, held the survey on the COVID-19 situation amongst European dealers. The survey was conducted in May with participation of 660 dealerships from 14 different countries. Results of a quick scan survey gives a good understanding about the effects and impact of the crisis on their businesses.

According to the survey, the effects of the COVID-19 crisis are strongly felt by distributors and dealer companies in the European agricultural machinery and equipment sector. Around 80% of the respondents are affected. The main trouble is taking place in the sales department of dealer companies with sales of new machines stagnating in particular. Used machinery sales are also affected but less than the sales of new machines.

The work in the repair and maintenance workshops of the dealer companies in general remains at acceptable levels. This is because customers, especially in the agricultural sector, had to do their spring work by using machines, which require in repair and service.

Near 45% of survey participants also state that they expect they will need (financial) support to survive the COVID-19 crisis. It means that companies want acceptable conditions for credit from the banks, as well as favorable conditions for stock financing from manufacturers and suppliers of machines. Only 13% of the dealer companies indicates that they do not need aid measures.

The outlook for the coming months is pessimistic. More than 70% of the participants foresees a significant turnover and order book decrease in the next two months, of which 16% of companies even expect a decline of more than 25%.

A full copy of the survey can be downloaded here.