Data released today by NAB shows businesses across Australia are purchasing new equipment and vehicles in record numbers as companies embrace the strongest market conditions seen in years.
Following 2020 where businesses across the globe were forced to ‘pivot’ their business through the pandemic, this year, Australian businesses are investing to build on the opportunities uncovered.
Top equipment purchases by Australian businesses include:
- Tractors up 146% year on year (YOY)
- Irrigation equipment up 217% (YOY)
- Earthmoving/construction equipment up 133% (YOY)
- Forklifts up 216% (YOY)
- Coffee machines up 155% (YOY)
Overall, NAB’s agricultural equipment finance sales are up 130 per cent year on year (YOY) in 2020, demonstrating real strength across regional Australia while industries like manufacturing have also increased 130 per cent YOY.
NAB Executive Regional and Agribusiness Julie Rynski said customers were taking advantage of strong business conditions and confidence while the Government’s Instant Asset Write Off Scheme had been key to stimulating investment.
“When businesses start purchasing equipment, it’s a real signal to us that farmers and regional businesses are in a phase of growth and expansion,” Ms Rynski said.
“With business confidence at an all-time high and businesses building on things they’ve learnt through the pandemic, I’m not surprised that equipment sales are so high.
“The majority of farmers and regional businesses have proven to be exceptionally resilient through two years of challenging conditions and are now poised to capitalise on new opportunities and brilliant market conditions.”
Ms Rynski said the bank did not expect current demand for equipment finance lending to ease any time soon.
“If we continue to have favourable seasonal conditions, we expect this level of investment in agricultural equipment to continue for the next 15 months,” Ms Rynski said.
“As Australia’s largest agribusiness bank, NAB is focused on continuing to support the sector to maximise growth and contribute to the economy.”