Despite a rural slowdown, spending on mechanical machinery and equipment is showing strong growth â?? already up 8% in the first quarter this year.
The import category remains the economyâ??s biggest – the $6.73 billion spent in the three months to the end of March represents 10.1% of the total market.
 The European Union continues to be the largest provider of mechanical machinery and equipment to New Zealand – with the Peopleâ??s Republic of China snapping at its heels.
In the year to March, New Zealand spent $1.74bn on imported mechanical machinery and equipment from the EU, and $1.72bn on the same from China, narrowing a gap that, just last year, was four times wider at $800m.
In third was the United States, on $1.26bn, up from $1.12bn for the previous corresponding period.
In the market for vehicles, parts, and accessories, Japan has retaken the lead from the EU, sending $1.87bn in volume.
Despite the narrowing gap, Mark Hamilton-Manns, president of the Tractor and Machinery Association (TAMA) and John Deere national sales manager, told DieselTalk he does not believe agricultural equipment sourced from China will overtake machines imported from the EU.
The majority of equipment in New Zealand is sourced from EU countries, given its suitability to our legislative requirements and agricultural practice says Hamilton-Manns.
US-sourced equipment – such as planters, combines and many high horsepower tractors – form the basis of many farmers and contractors fleet due to suitability to requirements.
I feel it high unlikely that Chinese-sourced, New Zealand-destined agricultural equipment will overtake that sourced from Europe for a range of reasons: quality, or perceived quality issues, and the European manufacturing infrastructure.
All major manufacturers have ether invested or expanded facilities in Europe in recent years,he adds.
The few Chinese tractor manufacturers who retail machines in New Zealand, which is a particularly competitive market, struggle in terms of quality and reliability.
