The U.S. Department of Commerce’s International Trade Administration (ITA) publishes market reports on high value industries to help U.S. exporters identify top export markets for their U.S.A. made goods and services. By ranking future export opportunities, these reports are a simple way for a U.S. business to plan its next sale. In addition to examining the opportunities available by market, each report details U.S. competitiveness in a sector, as well as any challenges a U.S. business may face entering a new market.
A big U.S. export remains agricultural equipment. Total sales of U.S.-made agricultural equipment total approximately $39 billion dollars, of which a third are U.S. exports. While Caterpillar and John Deere may come to mind when exporting heavy agricultural machinery, small businesses play an important role in supporting these exports; providing key inputs and acting as integral component of these larger manufacturers’ supply chains. This is good news for small businesses, when according to the ITA, approximately 18% of U.S. agricultural equipment exports include specialized engines, engine parts, and parts and components for tractors.
According to ITA’s "Agricultural Equipment" report the top markets for U.S. made agricultural equipment include Canada, Australia, and Mexico. This is even better news for U.S. exporters considering that two out of three of these countries are English speaking, and two out of three are members of the North American Free Trade Agreement (NAFTA), minimizing the barriers and reducing the cost of doing business internationally.
ITA states that agricultural equipment exports will be largely determined by the price of agricultural commodities, with declining commodity prices resulting in less demand for U.S. agricultural equipment. Never the less, the ITA expects that growth opportunities remain in particular for agricultural equipment manufacturers that are providing equipment for the livestock industry and or fresh produce sectors.
Read more about key export markets and trends for U.S. agricultural equipment at www.export.gov.
If you are already exporting and would like to know more about a specific country, reach out to your local Commercial Service representative who can offer free industry insights and country consultations.
Concerned about foreign buyer nonpayment? Call a local representative of the U.S. Export-Import Bank, who can guide you through different products that can protect against foreign buyer nonpayment, or assist your business finance an international sale.