Components: good first quarter, uncertainty for the end of year

In the first quarter of 2016, the component market, driven by exports, scored a +5% compared to the same period last year. Growth in the OEM sector, good results also in the special application sector. Meanwhile the high-medium power tractor segment suffers. The forecasts for the months to come are characterized by uncertainty

The market for components closes the first quarter of 2016 with a slight increase compared to the same period in 2015. This is what emerges from the estimates of Comacomp, the Association within FederUnacoma that represents the manufacturers of agricultural machinery components. For the first three months of the year, it highlighted an average increase in turnover estimated at five percentage points for the companies in the sector. The positive sign - notes the industry Association - is mainly linked to the good performance recorded in the OEM segment, which expects a 5% growth, with peaks of 10% for some companies. The aftermarket world, still characterized by a certain stability, recorded instead lower results. Meanwhile, the difficulties continue for supplies to medium to high power range tractors. With a 20-25% decrease in the first quarter of 2016, they show a significant contraction, thus confirming the negative trend that emerged in the last two years. On the other hand, as shown in surveys conducted in the components sector, supplies for the other self-propelled machinery, such as construction equipment, forklifts and special machinery, is showing good resilience. And precisely in the special applications sector we find great dynamism in the components for wind energy systems, while the liveliness of the braking systems components segment stands out in the traditional sectors. The results for the tractor oil tanks sector are not equally positive, coming to a standstill in the first quarter of 2016. Despite these sectoral specificities, the growth recorded in the first three months in the components is due in large part to the dynamics of exports to foreign markets, as demand from domestic buyers remains weak and unpredictable. Particular attention goes to Australia, a country in ferment according to the Association of components manufacturers, and Turkey, where - despite the recent economic boom - some risk factors are also emerging. Istanbul suffers from the uncertainties of a political-institutional framework in gradual deterioration, with the intensification of guerrilla warfare in the south-eastern Kurdish regions and a growing risk of terrorist attacks (the latest one in the capital was a few days ago). Also on the international stage, we highlight the essential stability of India and China, markets where analysts expected a halt. For the months to come, Comacomp forecasts are oriented towards a degree of caution. At best - according to the Association’s estimates - the market is expected to remain at last year’s levels. However, in a scenario still characterized by great uncertainty, there are hints of fear from the operators for a possible contraction in orders and turnover.