Plan ahead to get vital kit on farm on time

Issues such as computer chip shortages and steel price rises were already affecting machinery delivery times before recent developments exacerbated equipment supply issues. Martin Rickatson asks makers and dealers for tips on securing what you need when you need it.

Tales of how long it can take to expect delivery of a machine once ordered from a manufacturer or dealer can make many a farmer and contractor concerned they are not going to see the equipment they need before next harvest, let alone this one.

But with a bit of careful planning and some flexibility from the customer side, most suppliers say there should not be an issue and there are a few things buyers can do to help.

Graham Parker, sales director at eastern England multi-branch dealer Ernest Doe, suggests one benefit of larger dealer groups is they have the capacity to keep in stock what buyers are commonly likely to require.

We cannot sell from an empty barrow and we have tractors and equipment consistently on our books, as they were ordered last summer in time for the 2021-22 sales season, he says.

We have also increased our stock holdings. But lead times are likely to increase in our construction business we are already looking at ordering for delivery in mid-2023, and the same will probably become true in agriculture if we order a tractor now we are unlikely to see it before next year.

As a rule, we aim to support buyers by ordering from our suppliers consistently, on a monthly basis, to ensure we have stock of machines with the specification customers typically want. That applies to tractors, but also to other implements. With grass equipment, for example, mowers, tedders and rakes are often dragged out of the shed after a year only to find there are issues with a mower or rake and a replacement machine is sought in an emergency.

Even dealer groups with strong buying and stocking power cannot magic machines from thin air, says Mr Parker.

Prices

It is best not to assume a dealer will have stock down the line, or that prices will fall, so if you need a particular machine, then order early. If required, a dealer will often be able to offer alternative machines if the desired one is not available if you are prepared to be flexible. And if a machine is in stock there may good deals to be had, whereas a new order will be more directly subject to the inevitable price increases the industry is having to bear.

Angus Western, managing director at trailer and muck spreader maker Richard Western, says his firm is able to supply all products within 12-16 weeks from order.

No-one can predict the future, but we all know prices will rise over the lifetime of machinery. It is just a case of how steeply this happens over a certain period.

He advises farmers and contractors to stick to structured purchase and investment plans wherever possible.

Only buy what you need, when you need it, and never compare old quotes or previous prices to the current period. They simply are not valid given the circumstances we face.

In the past I would have advised customers to purchase in late autumn or winter to get a good deal on a trailer or spreader in time for the following season. Given the current circumstances I would urge them to place orders now for what they need next season, be that be parts, wearing metal or whole goods. The best prices obtainable for machinery and parts are todays and it makes sense to order as much wearing metal as you need for the season as soon as possible. High grade steel will be in short supply going forward as we see European governments invest in armed forces.

Neil Smith, sales and marketing director at hedge trimmer, diet feeder and muck spreader maker Shelbourne Reynolds, points out that manufacturers are still suffering from component supplier delivery issues, as well as regular cost increases.

It seems inevitable that machinery prices will continue to rise in the current climate of upheaval, he warns.

We have little ability to control the costs of the raw materials and the components required for manufacturing.

The company is very aware, though, that end users have limited ability to increase their prices to accommodate increased machinery costs, says Mr Smith.

Bearing this in mind, we have tried to support customers by absorbing as much of these cost increases as we possibly can.

Order now

Duncan McLeish, sales manager at Kuhn UK, says planning forward is the simple solution to ensuring you have the machine you need at the time you need it.

If you need a new mower for this silage season, it is highly unlikely you will find one in time. But order now for next year and there should not be an issue. Forage kit is often a last-minute emergency purchase when you put it away at the end of a season, check it over and make a replacement judgement then if necessary.

Mr McLeish says Kuhn UK holds healthy stocks of most arable and grassland machines in the UK, and its dealers customers can be supplied with most machines in good time.

We are probably fairly unique in our capacity to do this, but we order sets of stock machines a season ahead, while we also encourage our dealers to stock significant

quantities and to work together to source machines from each other.

What is less easy to control is the price of equipment due to raw material costs. Steel price costs meant that, like many others, we had to raise prices significantly last year, while the computer chip shortage affected machines incorporating electronics.

Russias invasion of Ukraine is only likely to exacerbate the situation, warns Charles Blessley, marketing manager at Case IH.

Machine components and key items used in manufacturing are produced all over the world and what has happened recently in Russia and Ukraine will only make sourcing more difficult than it already was, he says.

Our approach is to always tell dealers and customers exactly what we know, even if they will not like the information or want better news. Both parties are our business partners and it is in everyones interests that we keep them informed so they can plan using the best available information.

Machines with standard specifications are always easier to source and supply than one-offs and those with more complex specs, notes Mr Blessley.

In addition, there is always a possibility to pick up a cancelled order if there is some flexibility on specification required.

As commodity and raw materials prices increase, end prices will inevitably do the same. We have truly tried to keep prices as consistent as possible, but there is a huge headwind. Customers will need to plan their purchases far sooner than they did in the past, particularly as global turmoil increases.