Companies in this industry distribute farm equipment, lawn and garden equipment, and related parts. No major companies dominate the industry.
Demand is driven primarily by the health of the farming sector, which is tied to crop prices and yields. The profitability of individual companies depends on good merchandising and efficient operations. Large distributors have few economies of scale but can offer customers a wider range of products. Small distributors can compete successfully by holding exclusive territory rights to popular products. The US industry is fragmented: the 50 largest companies generate about 40% of revenue.
Products, Operations & Technology
Major product categories include new tractors (about 20% of industry revenue); new harvesting machinery (about 10%); new land preparation equipment; new irrigation equipment and parts; and new power lawn mowers. Other sources of revenue include other types of new and used farm and garden machinery and equipment.