Tractor Mike's video: UAW Strike Idles Tractor Production and How it Will Affect Us

You may hear this week that CNH is on strike. That's true, but in this video we'll dig a little deeper about what factories are striking, what they build, and how it will impact my viewers. CNH, if you don't know, stands for Case - New Holland. Those companies merged back in 1999 and are mostly owned by Fiat. They maintain two separate sales organizations and dealer networks and many of their products are very similar or identical. Even though they're owned by the same people, they don't like one another, their companies and products compete with one another. The strike that was mentioned earlier was by 1100 workers at the CNH production facilities in Racine, Wisconsin and Burlington, Iowa. The Burlington plant produces rough-terrain forklifts and tractor loader backhoes for Case Construction. The Racine plant, produces parts for Case's axial flow combines, cotton pickers and articulated tractors, but also the Magnum Series of Case tractor, a big player in the row crop market, and the New Holland T-8 tractor which competes there as well. All models of both tractors are over 150 hp and are primarily used by crop farmers. So, the strike will have minimal impact on my viewers. What may impact smaller tractor enthusiasts, is the drop in tractor demand. In March, (and these numbers are courtesy of the Association of Equipment Manufacturers) we saw the total tractor sales down 21.1% from last year, the first drop year-over-year since July of 2021. Tractors under 40 hp were down 25.5% from last year, 40-100 hp were down 14.1%, but tractors over 100 hp were up 7%. While those numbers are pointing toward the market returning to normal after Covid, part of the drop may do to a lack of inventory. Tractor stocks at dealerships were down 10% from last year. If you're wondering why big tractor sales are up, that's likely a function of expected rising prices for commodities. The Ukraine is a major farming area, and since they're at war with Russia, there's not much farming, and no exporting going on. Tractor sales are rising as producers in North and South America gear up to replace production lost from the war. LINKS YOU NEED TO KNOW ABOUT... The Tractor Fun Store: https://asktractormike.com/products-for-sale/ Support the Tractor Mike Channel: https://www.patreon.com/TractorMike Visit the Tractor Mike website: http://asktractormike.com/ Visit Facebook Page: https://www.facebook.com/Ask-Tractor-Mike-312112962245304/ Copyright 2022 Tractor Mike LLC