Dealers, manufacturers and suppliers of agriculture equipment are
expecting a better or similar harvesting season compared to last year,
which should positively impact equipment sales, according to survey
results released today by GE
Capital’s Commercial Distribution Finance Canada (CDF) business.
More than two-thirds (77%) of the respondents expect the harvesting
season to be the same or better than last year, while 20% expect it to
be worse. A similar majority of the respondents (78%) characterized the
seeding season as the same or better than last year, while 18% thought
it was worse.
“The cold spring temperatures resulted in a late seeding season, which
will put pressure on farmers to harvest quicker this year,” said Howard
Shiebler, president of CDF’s Canada business. “Reliable equipment is
critical when the harvest season is compressed, so many farmers will
upgrade their equipment to ensure a successful harvest.”
“As a leading provider of financing to equipment dealers and OEMs across
North America, with a strong, long-term presence in the ag industry, we
are a valuable partner for farm equipment companies,” said Neeraj Mehta,
CEO of GE Capital, Commercial Distribution Finance. “We specialize in
flexible financing that enables dealers to have the right amount of
inventory as the harvest approaches.”
The majority of survey respondents felt that their inventory levels were
about the same (48%) or higher (38%) than last year, with just 12%
feeling their inventory is lower. “Dealers are really paying attention
to their inventory levels this year and will need to be adequately
stocked if demand rises,” said Shiebler.
The survey was conducted June 17-19 at the annual Farm Progress Show in
Regina, Saskatchewan. Respondents were dealers, manufactures and
suppliers based in the Prairie provinces of Alberta, Saskatchewan and
Manitoba.
CDF has reinvested into this industry through increased credit capacity
and an expanded, experienced salesforce. In the last two years, CDF’s
North American agriculture financing portfolio is up 150%. CDF works
with manufacturers and distributors to create inventory finance programs
that enable dealers to stock a broad selection of products. Inventory
financing, also known as floorplan financing, is an important element of
a successful manufacturer-dealer business model. Manufacturers and
distributors can benefit from enhanced product flow and increased sales
opportunities, while dealers can obtain improved terms and credit
availability.
About GE Capital, Commercial Distribution Finance
GE Capital, Commercial Distribution Finance provided $34 billion in
financing for more than 30,000 dealers and more than 3,000 distributors
and manufacturers in the U.S. and Canada in 2013. Programs include
inventory and accounts receivable financing, asset-based lending,
private label financing, collateral management and related financial
products. For more information, visit http://www.gecdf.com/
or follow company news via Twitter (http://twitter.com/GEInventoryFin).
GE Capital offers consumers and businesses around the globe an array of
financial products and services. For more information, visit www.gecapital.com
or follow company news via Twitter (http://twitter.com/GECapital).
GE (NYSE: GE) works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in
energy, health and home, transportation and finance. Building, powering,
moving and curing the world. Not just imagining. Doing. GE works. For
more information, visit the company's website at www.ge.com.
Copyright Business Wire 2014