John Deere hoping for a big year

John Deere hoping for a big year

Iconic farm equipment manufacturer John Deere & Co. recently raised its sales projections for 2018, saying the agricultural and construction markets are looking up, and Deere is poised to take advantage.

News of the projections sent Deere & Co. stock climbing. This is great news for a brand that’s been mired in four consecutive years of rough sledding, thanks to weakened demand and lower grain prices worldwide. Now, though, Deere is projecting a double-digit percentage increase in demand, especially in the United States and Canada, the company’s two biggest markets.

The demand is mainly for replacement equipment, a Deere spokesman said, and that’s good news for the entire industry. When that many farmers are buying new equipment, they’re not betting on a good year this year, they’re betting on a lot of good years to come.

And then there’s the US housing market. As the number of available current homes continues to fall, builders are getting back to business, and Deere expects global construction equipment sales to jump by an incredible 80 percent through fiscal 2018, leading to a sales increase of nearly 30 percent this year alone.

These projections have been great news for Deere shareholders, who have seen their stock gain 50 percent in the past year and outperform the rest of the S&P 500 so far this year.

And Deere is not the only major equipment manufacturer looking forward to a flush 2018. Caterpillar’s earnings announcement also pleased stockholders and the national construction industry as a whole.

But there is one concern: supply may not be able to keep up with demand. It’s an issue that looms over this good news like a gray cloud. Shipping was slow, leading dealers to have to wait and buyers to get frustrated … or to shop elsewhere. If this continues, consumers may go elsewhere for their equipment needs, an eventuality Deere cannot afford.

The company said it will have a working solution to what’s causing the equipment delays later this year. In the meantime, they are hoping buyers are willing to be patient, at least in the short term.

The strength of and loyalty to the John Deere brand should buy them some time. The company is iconic for a reason. Generations of farmers and builders have trusted Deere to help them build their businesses, operations that are often passed down through the generations, along with that entrenched brand loyalty. So, there is some leeway, but if Deere doesn’t fix the delays, they might end up learning just how much.

About Ronn Torossian

Ronn Torossian is the Founder and CEO of 5W Public Relations. He is an experienced leader in the public relations industry with over 20 years of experience. Ronn Torossian has been named as Public Relations executive of the year by the American Business Awards, and has run countless award-winning Public Relations programs.

Ronn Torossian with ambassador Danny Danon and family

Ronn Torossian, CEO of 5WPR, with ambassador Danny Danon and family

Ronn Torossian

Ronn Torossian is the founder and Chairman of 5WPR, one of the largest independently-owned PR firms in the United States. With over 25 years of experience crafting and executing powerful narratives, Torossian is one of America’s most prolific and well-respected Public Relations professionals. Since founding 5WPR in 2003, he has led the company’s growth, overseeing more than 275 professionals in the company’s headquarters in midtown Manhattan. With clients spanning corporate, technology, consumer and crisis, in addition to digital marketing and public affairs capabilities, 5WPR is regularly recognized as an industry leader and has been named “PR Agency of the Year” by the American Business Awards on multiple occasions. Throughout his career, Torossian has worked with some of the world’s most visible companies, brands and organizations. His strategic, resourceful approach has been recognized with numerous awards including being named the Stevie American Business Awards 2020 Entrepreneur of the Year, the American Business Awards PR Executive of the Year, twice over, an Ernst & Young Entrepreneur of the Year semi-finalist, Metropolitan Magazine’s Most Influential New Yorker, a 2020 Top Crisis Communications Professional by Business Insider, and a recipient of Crain’s New York 2021 Most Notable in Marketing & PR. Torossian is known as one of the country’s foremost experts on crisis communications, and is called on to counsel blue chip companies, top business executives and entrepreneurs both in the United States and worldwide. Torossian has lectured on crisis PR at Harvard Business School, appears regularly on CNN & CNBC, is a contributing columnist for Forbes and the New York Observer, and has authored two editions of his book, “For Immediate Release: Shape Minds, Build Brands, and Deliver Results With Game-Changing Public Relations,” which is an industry best-seller. A NYC native, Torossian lives in Manhattan with his children. He is a member of Young Presidents Organization (YPO), and active in numerous charities.

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