How Will the UAW Strike Impact Customers' Purchasing Plans?

May 19, 2022

As part of a recent survey from Farm Equipment, conducted from May 3-4, when asked how they anticipated their customers' planned purchases to be impacted by the strike if it lasted 30 days or more, responses from Case IH and New Holland dealers were mixed. Many felt the impact of the strike would do little to affect an already difficult supply chain situation, with one New Holland dealer saying, "My customers already know we are not going to get much until fall anyway, and that was going to be very limited since we are a NH dealer."

Another Case IH dealer agreed, saying, "Equipment is already sold through fall, so impact would be on Q4 2022 / Q1 2023. With equipment already in short supply, I don't think this will change behaviors."

Still others were more concerned about the outcome, where one Case IH dealer stated, "Customers are reaching a point where price increases are starting to be met with less reception. Couple that with the unions demanding more while ag inputs are up and margins are down is not good image. I do not feel this will make my customers want to buy equipment."

More than one CNH dealer mentioned the possibility of their customers moving on to other brands if unable to get equipment from them. "Customers will go to whom ever has the equipment they need/have to have..No inventory no sales," said one New Holland dealer. Another Case IH dealer said, "Our competition (Deere/AGCO) have caught up and are well supplied. This is being used against us at this time."

Source : Farm Equipment

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