Farmers, construction contractors, and non-road equipment manufacturers are on a bumpy ride toward what is shaping up to be promising times ahead.
“In the short and medium terms, the economic environment remains very challenging,” said Al Melhim, AEM’s senior director of business intelligence. “High interest rates, falling commodity prices, and rising inventories are still exerting downward pressure on AEM’s three key sectors. These conditions have led to tighter margins, cautious capital investment, and slower equipment turnover. Additionally, policy-related headwinds such as high tariffs and labor shortages have continued to strain operational efficiency and workforce availability.”
The outlook starts to improve as you look out on the horizon, though.
“We see a shift toward positive momentum as a result of The One Big Beautiful Bill Act (OBBBA) framework,” Melhim said. Beneficial features of the OBBBA include numerous tax incentives, extended farm support, biofuel and rural energy incentives, and infrastructure spending—all of which can serve as economic catalysts for farmers, construction contractors, and non-road equipment manufacturers.
Melhim was a featured presenter during AEM’s “Business Intelligence Q3 Equipment Market Outlook” webinar on Aug. 7. Melhim, together with Tom Hopgood, a GlobalData Construction Economist, shared insights into how the agriculture and construction industries have been faring, and what’s expected over the second half of 2025 and beyond.
Click here to see more...