Industry Shift: Kubota Pursues Full Line Worldwide

Ag Equipment Intelligence recently released its “Big Dealer” report, which tracks ownership changes and consolidation trends of North American farm equipment dealers. 

George Russell of the Machinery Advisors Consortium, a partner in production of the report, said he sees a “second wave of dealer consolidation” in the industry. 

“The most activity we’ve seen in the past few years has taken place in the group of dealers who operate 15 to 19 stores,” Russell said. “I would not be surprised to see another five to seven dealerships join the 15-plus group in the next year. I’m sure almost all of them will be Deere dealers.” 

Russell also points to Kubota’s desire to be a global full liner as a significant shift in the industry. 

“This is changing the dynamics in North America,” he said. “As Kubota moves from a shortliner model to a full liner model and expands their dealer development, they are now more of a threat to the other major manufacturers, but they also represent an opportunity for dealers.” 

In response to Kubota’s direction, other manufacturers are adopting strategies to stave off growing competition from the company. For example, Deere has given additional emphasis to its under-90 horsepower tractors, where Kubota is strongest. 

In its 2017 marketing campaign, Case IH is reacting to Kubota’s entry into the hay and forage market with the purchase of Kverneland a few years ago, by emphasizing its hay tools and smaller tractors.

Source: Ag Equipment Intelligence