Market Trends of United Kingdom Agricultural Machinery Industry
This section covers the major market trends shaping the UK Agricultural Machinery Market according to our research experts:
Rising Farm Labor Costs
- There has been a structural shift in the occupational choice among rural workers, particularly rural agricultural workers, with changes in their occupational choices ranging from agriculture to non-agricultural sectors.
- In addition, agriculture in the United Kingdom has traditionally been a labor-intensive sector characterized by a higher number of seasonal immigrant workers working on farm fields in the member states. However, an acute shortage of farm labor has surfaced in the country's farm fields.
- This was reflected in the total percentage of employment in agriculture falling drastically from 1.16% in 2018 to 1.05% in 2020, as reported in the World Bank database. According to numbers published by the UK government, In 2021, the workforce in the agriculture sector was approximately 429 thousand people, which decreased from 432 thousand people in 2017.
- The labor storage has also triggered the rise in food prices to cover soaring wages for farmworkers. Thus, the shortage of farm labor is leading to a rise in wage rates, allowing the farmers to adopt farm mechanization in the region. The farm labor crunch witnessed in the United Kingdom following the Brexit policy has further raised the wage rate in the country.
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Tractors Dominates the Market
- The United Kingdom's agricultural sector has witnessed an increase in its integration with technology over the past few years to support sustainable agricultural practices in the country. The UK government is focusing on increasing farm mechanization to produce more with less environmental impact.
- Tractors, essential agricultural machinery, have witnessed a huge growth potential in the UK market. Farmers in this region are increasingly keen on purchasing high-end tractors to work on larger fields as part of their effort to improve crop yields and boost farm efficiencies.
- The number of agricultural tractors registered in the UK in October 2022 was up compared with the same month last year, at 926 machines. That is the fastest year-on-year rise since August 2021, by 25.3%.
- John Deere, AGCO Corporation, and CNH Industrial NV are some of the major tractor manufacturers in the country. These players have an extensive distribution network and a wide range of tractor machinery, giving them a competitive edge over other regional players.
