c_mayer - 7/30/2024 07:50
JW3890 - 7/30/2024 00:22
Makes a guy wonder...few just mentioned MacAllister looking to exit Ag, Ohio Ag already left. I could understand the profit margin being better on Cat or maybe Cat themselves encouraging the dealers to focus on their products? Could Ziegler be next to hang up their Ag business? Seemed years ago they pushed Claas hard.
+1 Feel bad for the employees
This guy gets it...if you have $100 million in ag equipment sitting on lots, and CAT is pushing you to get bigger in construction, where are you going to find more mechanics, sales people, and parts people? Ag is slow, and interest is high...so like I've said many times recently, this will weed out the men from the boys.
Most of these Challenger/old CAT dealers their hearts were never in AG. It was a way to diversify their risk when AG and Construction economies were cyclical, but now the construction market is changing from what I understand, and the OEM's want more rental because that's what customers want. So, you dump the stagnant ag lines and free up operating capital and personnel, and put it towards rental that likely has a much stronger cash flow cycle...and the owners of these giant stores get back to construction where their hearts always were.
Just my opinion from what I have been hearing. I would also bet AGCO is already working on a plan for those areas as they have been others.
Chris
Ziegler Closing Our Missouri Stores
