John Deere seeing green, experiences 1st sales increase in 4 years
John Deere recently reported its first increase in annual sales in four years. The increase is good news for the company which has been victim of a prolonged downturn due to low commodity prices.
Spencer's local John Deere dealer, Noteboom Implement, has seen a corresponding rise in sales.
"In Spencer alone we have more than doubled both new and used whole goods sales since last year," said Bryce Ricklefs, store manager for Noteboom Implement of Spencer. "The economy hasn't improved much, but still across three, four, five years that we have been into this equipment, it needs to be replaced and repaired. Operators want and need to stay updated on their equipment even in downtimes. Even if it has been four or five years of a rough economy at some point they need to update."
Ricklefs expects the upswing in sales to continue into the new year.
"There are really no economic indicators that the strong sales will continue," Richlefs said. "We do think we have seen used equipment valuations bottom out after several months. We are seeing some indicators of used equipment picking up in some models. The indicators that new equipment will keep selling is that sometime equipment just needs to be updated."
Ricklefs added that technology and data management are the future of agriculture as they aid operator efficiency.
"The biggest thing is data management, documentation and what you do with it," Ricklefs said. "Obviously, us being John Deere, we push the John Deere operations center. That allows you to do a myriad of things that you are choosing as the operator with your own historical data and current data that helps you make better decisions."
Noteboom Implement has been in the Spencer area since 2014 when it purchased Northwest Equipment, the previous John Deere dealership. Northwest Equipment served the Spencer area from 1989-2014.