Canadian farmers could see fewer homegrown machinery ideas reach the market if a productivity trend identified by Farm Credit Canada continues.
In a recent analysis, FCC said that labour productivity growth in Canada’s agricultural equipment manufacturing sector has stagnated.
Analysis author Bethany Lipka wrote that productivity rose just 11 per cent between 2015 and 2021. By comparison, labour productivity in food manufacturing grew by close to 30 per cent over the same period.
Weak productivity growth could become a competitiveness risk for manufacturers facing rising input costs, softer demand, skilled labour shortages and heavy reliance on the U.S. market, she said.
She added that Canada’s farm equipment manufacturing sector is built largely around adaptable, specialty products tailored to Canadian growing conditions.
“Canadian manufacturers have stayed successful by being adaptable and focusing on niche, shortline products (ones that attach to tractors and other machinery),” wrote Lipka.
That’s significant for farmers. It shows Canadian manufacturers are not just another brand choice, but may also fill a specific role that larger manufacturers won’t.
Darren Bond, a farm management specialist with Manitoba Agriculture, said short-line manufacturers often face hurdles even in normal market conditions when it comes to compatibility and after-sale support. However, the very strongest products still rise to the top if they provide enough value.
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