MISSISSAUGA, ON - Dealers, manufacturers and suppliers of agriculture equipment felt that the seeding season was generally better than last year, according to survey results released today by GE Capital’s Commercial Distribution Finance Canada (CDF) business. Almost 75% of survey respondents thought the seeding season was better or the same as last year, while 25% felt it was worse. Expectations for harvesting are also mostly positive, with 62% thinking it will be the better or same as last year and 35% thinking it will be worse.
“Weather is a huge factor in harvesting confidence; this year once again we had a cold spring, and the lack of rain in Saskatchewan has a major impact on the overall harvest season,” said Howard Shiebler, president of CDF’s Canada business. “However, seeding was generally more successful than last year, so farmers are cautiously optimistic about harvesting season and may need to upgrade or service their equipment to be ready.”
Fifty percent of survey respondents felt that equipment inventory levels were higher compared to last year, while 28% felt levels were the same, and about 19% felt that levels were lower. Last year, the majority of survey respondents felt that their inventory levels were about the same (48%) or higher (38%) than the previous year.
“Last year we saw a late seeding, which made for a quicker harvest and more equipment demands, so many dealers added more inventory to be prepared for equipment upgrades,” said Shiebler. “Some dealers probably have equipment left from last year and will look to move that product first. However we expect the inventory levels to balance out by the end of the year.”
The survey was conducted June 17-19 at the annual Farm Progress Show in Regina, Saskatchewan. Respondents were dealers, manufactures and suppliers based in the Prairie provinces of Alberta, Saskatchewan and Manitoba.
CDF is a leading provider of financing to equipment dealers and OEMs across North America. CDF works with manufacturers and distributors to create inventory finance programs that enable dealers to stock a broad selection of products. Inventory financing, also known as floorplan financing, is an important element of a successful manufacturer-dealer business model. Manufacturers and distributors can benefit from enhanced product flow and increased sales opportunities, while dealers can obtain improved terms and credit availability.
About GE Capital, Commercial Distribution Finance
GE Capital, Commercial Distribution Finance provided $36 billion in financing for more than 30,000 dealers and more than 3,000 distributors and manufacturers in the U.S. and Canada in 2014. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management and related financial products. For more information, visit gecdf.com or follow company news via Twitter (GEInventoryFin).
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