Industry Facts

The overall value of turnover of AEA members, both manufacturers and suppliers to the British market, was estimated at some £3.8 billion in 2010. Exports for tractors, agricultural machinery and outdoor power equipment accounted for more than £1.5 billion.

For an Overview of the Agricultural Machinery Industry click here

Agricultural Engineering Industry
For the agricultural engineering sector total turnover was estimated to be approaching £3.1 billion, of which UK based manufacturers contributed £1.75 billion. The value of exports in this sector exceeded £1.4 billion, leaving the domestic market at some £1.7 billion.
The figures suggest that in 2010 the UK agricultural engineering industry suffered a marginal trade deficit (less than £20 million).

Domestic Market: In the last decade between 10,000 and 18,000 new agricultural tractors have been registered each year; 2010 saw a total of 13,347 units, some 11% less than in 2009. The average horsepower of an agricultural tractor has risen from 121 to 142 hp in the last 10 years.

Outdoor Power Equipment
The total domestic market for outdoor power equipment has been estimated at some £550 million in 2010, a small decrease on the previous year.

UNITED KINGDOM TRACTOR REGISTRATIONS
Agricultural Tractor Registrations (>50 hp) : Monthly 2009-2011

Source: AEA Economics Department

UK tractor registrations are taken as a broad indicator of the strength of the domestic market for agricultural equipment. Tractors must be licensed for use on public roads and as such are registered with the Department for Transport which allows an accurate count to be made. In value terms, sales of tractors, plus parts and accessories, account for almost one half of farmers’ total spend on equipment, which again makes this data series a prime indicator.

Agricultural Tractors: Sales levels continue to fall in the first half of the year, but began to level off in the second half as crop prices improved.

History: The first chart below illustrates a cyclical pattern around a longer term downward trend, with 2008 emerging as the peak for this decade; the power sold in recent years is shown in the second chart.

Regional: The more easterly regions have been grouped in the first chart below and these tend to have a predominantly arable base. The more westerly regions are shown in the second chart; these tend to include more dairy and livestock enterprises. No particular pattern emerges from the movement in registrations by region in 2010 with declines varying from 5% to more than 15% seen in both groups.

UK TRACTOR REGISTRATIONS : Market Share Analysis
Source: AEA Economics Department

UK AGRICULTURAL TRACTOR REGISTRATIONS (> 50 hp)