Ag and Construction Industry Conditions Show Early Signs of Recovery
Summary
The agriculture and construction industries are showing early signs of recovery after a challenging 2025, with modest improvements and stabilization in equipment markets, according to AEM's latest insights.
Why It Matters
This article highlights the gradual recovery of two critical sectors—agriculture and construction—that have faced significant challenges. Understanding these trends is essential for manufacturers and stakeholders to adapt their strategies and prepare for future market conditions, particularly as they navigate equipment demand and production cycles.
Key Takeaways
- 2025 was a challenging year for agriculture and construction, but signs of recovery are emerging.
- Farmers are currently prioritizing maintenance and retrofits over new equipment purchases due to financial constraints.
- The equipment market is stabilizing, with a potential for growth in selective segments in 2026.
- Inventory management and production tightening are crucial for maintaining market stability.
- The used equipment market remains strong, particularly for smaller tractors and sprayers.
As difficult as 2025 was for construction and agriculture, the year closed out on a somewhat positive note. Modest improvements began to materialize across both industries, a trend the non-road equipment manufacturing industry is hoping to build on in 2026 and beyond. “Now we’re starting to see signs of stabilization, and maybe even some of the first signs of recovery,” said Al Melhim, AEM’s senior director of business intelligence. “This is really good news, and it really matters with respect to how AEM members prepare for the year ahead.” Melhim was a featured presenter during AEM’s first of four “Business Intelligence Equipment Market Update” webinars set for this year. Melhim, together with Tom Hopgood, a construction economist for GlobalData, discussed where the agriculture and construction industries appear to be headed in the months ahead. Stay on top of emerging industry trends with AEM’s quarterly Business Intelligence Equipment Market Update webinars, where leading experts break down industry issues and pinpoint crucial changes in the landscape to AEM member companies refine their strategies. Save a spot at the next webinar. Are Ag’s Ugliest Days Behind It? Melhim said 2025 was the most challenging in recent memory for the agriculture industry, particularly with respect to high-horsepower equipment. Strained by thin margins, poor credit conditions, and weak liquidity, U.S. farmers didn’t have the confidence to invest in large-ticket items. “Farmers had sh...
