The agricultural machinery market is falling in 2024, what to do in 2025?

The overall decline of the agricultural machinery market in 2023 is an undeniable fact, and the agricultural machinery market in 2024 will continue to decline in 2023, and the market is not expected to be very good in 2025. The agricultural machinery market situation is an examination for agricultural machinery enterprises, how should agricultural machinery enterprises respond?

Analysis of the reasons for the fall in the agricultural machinery market

The reasons for the decline in the agricultural machinery market are multifaceted, both macro factors and industry factors, as well as the company’s own factors.

As for macro factors, basically the global economy is going down, which leads to blocking of domestic exports, sluggish consumption, sluggish

investments, the general economic downturn, and the agricultural machinery industry was not spared. At the same time, domestic food prices have been

are low and farmers' income from grain production is low, making farmers less willing to invest in

agricultural machinery.

As for industry factors, mainly in the agricultural machinery industry, homogenized competition is serious, there is excess production capacity, which

leads to excess supply in the market, increased competition, frequent price wars, and a decrease in enterprise profits. At the same time the industry

agricultural machinery does not have sufficient innovation, intelligence, the level of information technology is low, it is difficult to meet development needs

modern agriculture. Own factors of the enterprise, mainly some agricultural machinery enterprises do not have basic

technology, product quality is not high, service level is poor, brand influence is weak, it is difficult to gain a foothold in the market. At the same time some

agricultural machinery enterprises do not have market understanding, cannot understand market changes and user needs in a timely manner, which

leads to delays in product sales.

II. Response strategy for agro-industrial enterprises

Faced with the downward situation in the agricultural machinery market, agricultural machinery enterprises must actively respond, adopt

effective measures to reduce costs, improve efficiency, speed up the introduction of new products, reduce operational risks to respond to

changes in the market.

(1) Management costs of reducing pressure

In the current sluggish market situation, agricultural machinery enterprises need to strengthen internal management, reduce costs and improve profitability.

Reduce redundancy. Enterprises can reduce labor costs by optimizing the organizational structure and streamlining personnel. For

departments with a large number of redundant employees, the number of personnel can be reduced through competitive hiring, internal

transfer, early retirement and other funds. At the same time, enterprises can strengthen staff training and improve their qualifications

personnel and work efficiency, reduce labor costs.

Elimination of unnecessary sectors. Businesses can comb through existing departments, and for sectors with overlapping functions and low efficiency

they may be merged or withdrawn. At the same time, enterprises can strengthen collaboration and communication between departments and improve overall operational efficiency

efficiency.

Reduced purchasing costs. Businesses can reduce procurement costs through centralized procurement, bidding and purchasing. At the same time, enterprises can

establish long-term partnerships with suppliers to improve the efficiency and quality of procurement.

Reduced operating costs. Businesses can reduce operating costs by saving energy and reducing consumption, reducing

waste and other means. For example, enterprises can strengthen equipment maintenance and management, improve utilization and service life

equipment; Optimization of production processes and reduction of waste during production; Strengthening inventory management, reducing costs

stocks, etc.

Increasing the efficiency of use of funds. Businesses can improve efficiency in the use of funds by strengthening financial management.

For example, businesses can strengthen accounts receivable management and speed up collections; Optimization of the financing structure, reduction

financing costs; Strengthen investment risk management, increase return on investment, and so on.

(2) Digitalization for increased efficiency

Digitalization is an important means of increasing the efficiency of agricultural technology enterprises. Thanks to the use of digital technologies, enterprises

can achieve improvements in office efficiency, research and development efficiency, and sales efficiency.

Improving office efficiency. Companies can exchange information and collaborate between departments, creating joint

office platforms. For example, enterprises can use information tools such as OA systems, ERP systems and CRM systems to

increasing the efficiency and accuracy of office work. At the same time, companies can strengthen the training of their employees and improve their ability to use

digital tools.

Increasing R&D efficiency. Companies can improve their research and development efficiency through the use of digital technologies. For example,

companies can use digital design tools such as CAD, CAE and CAM to shorten the product development cycle; Usage

emulation analysis methods to improve product performance and reliability; Using a collaborative research and development platform

to achieve cross-sectoral and cross-regional collaborative research and development.

Improving sales efficiency. Companies can improve sales efficiency through the use of digital technologies. For example, businesses can

create e-commerce platforms to implement an organic combination of online sales and offline services; Using a CRM system for

classification and management of customer information to increase customer satisfaction and loyalty; Using large scale analysis methods

data, analyzing customer needs and purchasing behavior, developing precise marketing strategies and much more.

(3) Accelerating the introduction of new products

Faced with changes in the market and user needs, agribusinesses must accelerate the introduction of new products and increase

competitiveness in the market.

Strengthening market research. Companies can understand user needs and market changes through market research. For example,

companies can collect information about user needs and markets through questionnaires, user interviews, competitive analysis, etc. At that

At the same time, enterprises can strengthen communication and interaction with users, create user feedback mechanisms, and learn in a timely manner

user opinions and suggestions about products.

Increase investment in R&D. Companies can improve the technical content and added value of new products by increasing investment in

R&D. For example, enterprises can strengthen the research and development and application of intelligent and information technology, improve the level of

intelligence and information technology of products; Strengthen the development and application of new materials, new processes, improve performance and reliability

products and so on.

Increasing the speed of delivery of new products. Companies can increase the speed of delivery of new products by optimizing R&D processes and

production processes. For example, enterprises can use parallel engineering methods to achieve parallel R&D and

production processes; Using modular design to increase product versatility and interchangeability; Strengthen chain management

supplies to ensure timely supply of raw materials and spare parts for new products. Expanding distribution of new products. Enterprises

can intensify the promotion and promotion of new products through various channels and methods. For example, businesses can demonstrate

characteristics and benefits of new products through exhibitions, forums, seminars and other events; Promotion of brand image and market

the cost of new products through advertising, media, Internet and other channels; Increasing awareness and acceptance of new products

by users through testing, demonstration, training and other means.

(4) Reduce operational risks

Faced with changes and uncertainty in the market, agribusinesses need to strengthen risk management and reduce operational

risks.

Strengthening the supplier management system. Businesses can reduce the risk of purchasing raw materials and spare parts by improving supplier management.

For example, businesses can evaluate and select suppliers and establish long-term partnerships; Strengthen control and evaluation of suppliers

to ensure the quality of raw materials and spare parts and delivery times; Creating a diversified system of suppliers, reducing dependence on one

supplier, etc.

Strengthening distributor management. Businesses can reduce sales risk by strengthening distributor management. For example, businesses can evaluate and

select distributors, creating stable sales channels; Strengthening training and support for distributors, increasing their marketing capabilities and

service level; Create distributor incentives to encourage distributor enthusiasm and loyalty.

Improving cash flow management. Businesses can reduce their financial risks by improving cash flow management.

For example, businesses can strengthen accounts receivable management and speed up collections; Optimization of the financing structure, reduction

financing costs; Strengthen investment risk management, increase return on investment, and so on. At the same time, enterprises can create

Early warning mechanisms for cash flows, promptly identify and solve cash flow problems.

Improving legal risk management. Businesses can reduce legal risks by strengthening legal risk management. For example,

enterprises can create and improve a legal risk prevention mechanism, strengthen contract management, intellectual property protection,

product quality and other aspects of preventing and controlling legal risks; Strengthen the legal training of employees, improve their legal

awareness and ability to prevent risks; Strengthen cooperation and exchange with legal authorities, obtain legal information in a timely manner

and support.

III. CONCLUDING REMARKS

The declining market for agricultural machinery is both a challenge and an opportunity for agricultural machinery businesses. Agricultural technology enterprises

must actively respond to changes in the market, strengthen internal management and reduce costs; Strengthen digital construction, increase

efficiency; Accelerating the introduction of new products, increasing market competitiveness; Strengthen risk management and reduce operational risks.

Thanks to the implementation of these measures, agricultural technology enterprises can gain a foothold and grow in the market. At the same time, the government and all sectors of society must also

Provide more support and attention to agricultural machinery enterprises and promote the healthy development of the agricultural machinery industry.Original: My farm

Source: Agricultural Machinery Information Network