News

Disagreement on equipment inventory

The Association of Equipment Manufacturers (AEM) and Equipment Dealers Association (EDA) disagree on inventory levels as sales continue to lag.

Both organizations surveyed members recently and while the consensus is new and used inventory levels are declining, there are contrasting views about the amount of equipment currently on dealer lots.

AEM senior vice president Charlie O’Brien.

“About 59 percent of dealers say inventories are still a little too high, and from the manufacturer’s perspective only 36 percent feel (inventories) are too high.  And 43 percent (of manufacturers) feel we are at the right level.”

He tells Brownfield manufacturers tend to take a longer-term view, whereas dealers focus more on the here-and-now.

“(the dealers) are looking at the amount of inventory on their lot and looking to move that off the lot, so they’re really in a shorter-term perspective than what manufacturers are.  Manufacturers are probably looking at it in a 12 to 18 month window.”

O’Brien says the value of the survey is in identifying trends, and both associations can work together to find creative ways of moving equipment to stabilize the market.