Rollercoaster year for machinery sales

This year, sales fell across the board in every state.

In December last year, national sales of tractors was approaching 18,000 units, this year that number has fallen to 13,000.

But it is important to keep this in context and remember what an exceptional year 2022 was for the agricultural and machinery community.

Tractor and Machinery Association of Australia executive director Gary Northover said while the level of decline appeared high, the 13,000 tractors sold in 2023 was in line with what has traditionally been regarded as a strong year for sales.

"We had two years of sales that were 50 per cent over what was considered to be a good year," he said.

"The market simply couldn't absorb any more tractors at that rate.

"It you look at the rate of decline, it went up considerably when the government's temporary full expensing program ended (on June 30).

"The announcement of a potential El Nino also made people pull back a bit and be a bit more conservative."

Mr Northover warned 2024 could be tougher for sales, due to the predicted onset of drier weather along with the ongoing increases in interest rates.

"Not only are local interest rates having an impact but the inflationary effects of increased labour costs and ongoing supply chain difficulties have seen machinery prices rise significantly and history tells us that these can take some time to unwind, if at all," he said.

Mr Northover said while machinery dealership yards had plenty of stock, the industry continued to experience frustration with the processing of machines through Australian wharfs.

"All attempts to have priority applied to machinery that might be "time sensitive" are met with the answer that the system is overloaded and can only manage on a first-come, first-in basis," he said. "This means that ag machinery must take its place alongside such things as passenger vehicles when it comes to being released from quarantine and if delays are experienced, the impact can be significant."

While machinery sales fell this year, there was been a strong end to 2023 for Ritchie Bros.

The company's National End of Year Unreserved Auction actually shattered previous records in terms of gross transaction value and it also attracted record registrations.

The sale's gross transaction value topped out at more than $63 million.

This result well and truly surpassed last year's record of $41.7 million.

"We are incredibly proud of the success of our 2023 end of year auction, which has once again exceeded our expectations," Ritchie Bros Asia-Pacific sales director Cody Watson said.

"The remarkable success of our 2023 end of year auction, with a gross transaction value surpassing $63 million, is a testament to the robust demand for heavy machinery in Australia."

The auction attracted more than 4399 online bidders from 34 countries, setting a record for registrations and showcasing the international appeal of the event.

The overwhelming majority of assets were purchased by Australian buyers, highlighting the strong demand for heavy machinery still within the country.

The auction also attracted 1019 buyers who seized the opportunity to secure equipment and trucks across the transport, construction and agricultural industries.

The event also garnered strong interest from sellers, with 375 consignors in the sale.

Looking at purchasers, the highest number of buyers came from Victoria, with 372, followed by NSW at 262.

Some of the highest prices paid included $540,000 and $525,000 for 2022 Kenworth T659 prime movers, a 2011 MTE trailer made $197,500 and a 2020 Hercules trailer went for $130,000. A 2016 CAT 825 compactor made $450,000.