Agricultural Machinery Manufacturing in Mexico - Industry Market Research Report

Well-oiled machine: Industry demand is influenced by agricultural commodity prices, which can lead to significant revenue swings

Agricultural Machinery Manufacturing in Mexico
The Agricultural Machinery Manufacturing Industry in Mexico consists of establishments that manufacture machinery and equipment for agricultural and livestock activities, including motorized lawn and gardening equipment. The industry has declined slightly over the five years to 2019, as large spikes in interest rates during the period have made domestic buyers less able to finance purchases of agricultural machinery. This industry is highly concentrated and import penetration is also high in this industry, owing to the large proportion of industry products manufactured in the United States and China. This industry tends to have a moderate to high level of volatility, as demand is heavily influenced by agricultural commodity prices and interest rate fluctuations, which can lead to significant revenue swings from year to year. Over the five years to 2024, the industry is expected to rebound as agricultural commodity prices recover and domestic interest rates fall. As expectations of low inflation result in interest rates declining, prospective buyers will likely find themselves more able to afford financing for industry products. Additionally, rebounding agricultural commodity prices are expected to increase demand both domestically and abroad. Industry operators manufacture agricultural machinery and equipment, as well as powered lawn and garden equipment for homes. Key agricultural equipment includes tractors, harvesting and seeding machinery, grinders, mixers, wool presses, windmills and other hardware. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.