The tractor and machinery industry is welcoming a challenge by the Minister of Agriculture to train New Zealanders rather than continue relying on seasonal migrant workers.
The company claims that in 2018 it increased sales by 13%, leading to a plan to push tractor and header sales by 15% and 8% respectively.
On the tractor front, the targets will require the key production plant at Beauvais in France to increase output from 14,000 to 18,000 units per year -- an increase of 30%.
The parent company AGCO says it will make substantial investments in land and infrastructure over the next five years.
Interestingly, logistics will be a key aspect of the increases. In 2014, about 7000 parts were required at the plant to build its tractor ranges. This will need to rise to 20,000 items by 2020, the company says.
The need to streamline parts sourcing will see external parts supplies being allocated their own spaces on site and the likelihood of their own on site sales teams.
On a broader front, MF is also looking at providing customers with more choice and customisation options for their tractors. This will be different from the group’s Valtra Unlimited Studio at the Suolahti plant in Finland, probably using a dedicated off line area for the addition of options.
Another new move will be remanufacturing of tractor transmissions to complement engines now being remanufactured in Finland. The facility will be available for newer models and older units like the 3000 series.
At Beauvais the transmissions will be stripped out, cleaned, renovated then marketed with a 12-month warranty. The purchase price will be roughly 40% of a new unit.