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Hynes Blog

Agflation and Shifting Agricultural Equipment Demand

Posted by Phil Misch on October 23, 2013

We live in an agflation world, and it’s forcing changes all along the supply chain. 

Consumers need to adapt to increasing oil and food prices, while farmers and equipment manufacturers have to adapt to meet high-volume production demands.

What is agflation? It is a term originally coined by analysts at Merrill Lynch used to describe the increase in agricultural product prices, which most recently has been a consequence of nationwide drought.

With agflation and rising grocery bills comes an inevitable shift in consumer behavior and demand. Because refined and processed foods are less impacted by the fluctuating price of agricultural goods, low-income and middle-class shoppers are more likely to purchase these products over fresh produce and animal products when prices rise.

Farming  

As consumer demand shifts, this works its way up the supply chain to agriculture equipment manufacturers, who may need to ramp up production to meet farmers’ needs.

This is where roll forming can make a real impact on your agriculture manufacturing projects. Here are just a few advantages of scaling manufacturing through roll forming: 

Increased Uniformity and Consistency

For large, high-volume orders, roll forming can produce more consistent parts with greater uniformity than other forms of metal fabrication.

Symmetrical, uniformed parts with consistent dimensions can be manufactured to assure simplified production that quickens assembly and minimizes the chance of defects. You will find more accuracy in individual parts as well as entire production lines when you roll form.

Eliminate Secondary Operations

By combining a variety of operations into one simplified roll forming process, the need for multiple-stage, secondary operations such as cutting, notching, punching and post-painting can be eliminated. This ultimately increases the structural integrity and stability of a part.

Significant Cost Savings

Roll forming requires less material handling, therefore requiring less labor than other manufacturing processes. The continuous production process lowers the cost-per-piece of each metal piece. 

Beyond the production of a piece, you can save on assembly and delivery. Because roll forming is a much simpler process, the turnaround for parts is quicker, meaning a finished piece can get to you quicker. Tooling cost amortization and inventory management improve cash flow and reduce total cost of ownership. 

By anticipating future demand and developing a cost avoidance sourcing strategy, you can navigate agflation and meet the needs of tomorrow’s farmers.

Photo Credit: jleanne1972 via flickr

Topics: agriculture, manufacturing