After deferring replacement for some time, a resurgent agricultural market is hungry for new equipment.
That’s proving a challenge for machinery importers and distributors trying to keep up with the demand, asset finance specialist UDC says.
“While there was indeed the traditional pre-election dip in enquiry, the underlying message coming through from our dealers is that the agricultural sector is upbeat about the economy,” UDC national sales manager – equipment dealer John Wragg says.
“The market naturally retracted with the lower dairy payouts over the previous few years which saw farmers deferring repairs and maintenance as well as capital expenditure but now we are seeing a resurgence in spend and we believe 2018 will be another strong year on top of the buoyant current market.
“The market certainly picked up in 2017 and the challenge for some equipment brands has been managing the inflow of new stock.
“But manufacturers seem to have forecast well for the demand and their new units are arriving soon.”
Wragg says the current lending environment is highly competitive and smaller equipment brands are also looking to expand into point-of-sale finance solutions because it gives the dealer a key component they need, control of the deal.
“Being able to give the customer surety of the deal being done there and then through our online system UDC Live is key,” he says.
“UDC is expanding its suite of auxiliary online services to dealers to help them assess and process finance applications more quickly and efficiently because it’s important that we support and add value to the operation.
“Giving dealers a range of options to transact with both UDC and their customers is important, particularly as volumes increase.
“We see our direct business team as an important additional channel working with our equipment dealers to better serve their needs.”
Wragg says UDC’s marketing team has also become an increasingly important component in its dealer offering.
“Using their insight and knowledge has assisted in delivering more targeted and accurate finance campaigns.
“We are also seeing increasing enquiry around finance and operating leases of plant and equipment for short term contracts. It’s a small but growing element of our business.
“We believe that customers are considering all options in respect to the management, utilisation, and risk management of their asset portfolio.”
