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LANCASTER COUNTY
Diversity, dairy market expected to help local farm-equipment dealers
A variety of factors, led by a slump in crop prices, are leading some farming equipment producers to project a tough year ahead. But midstate manufacturers say they are not worried.
John Deere Inc., an industry leader in sales of heavy farm equipment, caused a stir last month with its prediction that industry sales for agricultural machinery in the U.S. and Canada could decline 25 percent to 30 percent in 2015. John Deere reported a 20 percent year-over-year fourth-quarter drop in profit.
"The slowdown has been most pronounced in the sale of large farm machinery, including many of our most profitable models" Samuel R Allen chairman and CEO of John Deere, said in a news release.
At Pequea Machine, which manufactures farm equipment in Earl Township, Lancaster County, Dennis Skibo expects a decent 2015. But it will require Pequea to respond quickly to in-season orders, he said.
"The dealer is our customer, and their lots are packed with high-priced combines that didn 't move," said Skibo. "They don't want to be forced to order a lot of stuff if their uncertainty level is up."
A "good chunk" of Pequea business is in hay tools, Skibo said, and that equipment is still selling well. "I'm not...