Positive problems – how many times do you hear those two words in a sentence together? Typically, a problem is not a positive and positives are not problems. However, after the year we all made it through in 2020 and the uncertainty that still lies ahead in 2021, “positive problems” may be the most accurate phrase to use, summing up what has happened and looking at what to expect.
Along with challenges, the team at RDO Equipment Co. is seeing areas of optimism in 2021. Even when it is cautious optimism, RDO is always looking for bright spots and areas of opportunity to help customers and all equipment companies make the most strategic business decisions.
Related article: What you need to know about buying equipment internationally
Looking ahead at the rest of the year, there are challenges still looming from the pandemic-fueled 2020 that will affect all companies that own and operate equipment. What is the bright spot? These challenges are creating opportunities for agriculture equipment buyers – cases of “positive problems.” These areas of uncertainty have silver linings, particularly for used equipment and those buying internationally.
New Equipment Shortage
Supply chain issues are expected to continue this year, making new agriculture equipment tougher to get. This is not limited to one manufacturer, a certain area, or even the equipment industry; virtually everyone is struggling to keep inventory in stock and fulfill orders as quickly as in pre-pandemic days.
Because of this stress on new equipment, the demand for used agriculture equipment is expected to be high this year. Those interested in used machines should get a head start on the search and be sure to work with a company that has a large inventory and experience in the full export process to avoid any delays or issues.
Lower Dollar Value
The U.S. dollar is not as strong as it once was. After weakening throughout most of 2020, there is optimism for what it looks like later this year, with Bank of America one major source finding reasons to expect the USD to strengthen in 2021.
The current uncertainty makes equipment more affordable for global buyers. Now is a great time to take advantage of an opportunity to get high-quality, pre-owned agriculture machines.
Related article: 5 misconceptions of buying used agriculture equipment
Keep in mind that higher demand for used equipment does mean prices also may be higher than usual. It is important to work with a seller that is reputable and has high-quality equipment to offer, ensuring the investment pays off and still delivers strong return on investment.
Rallying Commodity Prices
While not at record levels, commodity prices have come on strong again. There is nothing like good prices to inspire confidence to invest in agricultural equipment.
Those who put off buying new machines last year are in a better position this year to make those purchases. Quality used equipment is a great way to add to a fleet while keeping spend conservative, as everyone keeps an eye on the market and prices throughout the rest of the year.
A Final Thought
Regardless of where you choose to do equipment business, do not forget that RDO Equipment Co. is poised to be a partner to companies around the globe.
With the largest equipment selection, both agricultural and construction machines, expertise in international documentation and shipping, and a full partnership approach that includes after-sale parts, service, and support, the RDO team is there throughout the entire process.
About The Author
Olga Hall is Director of International Sales for RDO Equipment Co. and based at the company’s Field Support Office in Fargo, ND.
Learn more about best practices when buying equipment internationally and the various areas of expertise the RDO team has in equipment, parts, support, and the complete export process. To see more used agriculture and construction equipment for sale, contact your local RDO Equipment Co. store.