US & Global Economic Impact Analysis and Forecasts

Freedonia analysts and economists are sharing their insights on how major events are impacting different parts of the US and global economies.

Worker Shortages & Need for Efficiency Propel Automation, Big Data, & Other Changes in Agriculture & Mining

If there’s one thing the COVID-19 pandemic has made clear, it’s that the effect that worker losses can have on productivity. As immigration has been limited, workers have sought jobs less exposed to pandemic infections, and more employees have had to take time off for illness, quarantine, or family care, companies have struggled to maintain output.

In an economy challenged by worker shortages – particularly in industries that have long been supported by immigrants and migrant workers – automation and efficiency are very high priorities.

While software as a service (SaaS) and leasing over ownership is a main feature in high-tech industries that expect to see frequent upgrades and product improvements, innovations are moving even those markets that have long seen as low-tech industries in this direction. To keep pace and ahead of that trend, companies such as John Deere are seeking to fundamentally transform both their businesses and product offerings in coming years.

With technological innovation revolutionizing farming, forestry, construction, and mining, Deere argues that customers now require more than just a piece of equipment. This could include:

  • hiring out the equipment as part of a comprehensive solution for farms, quarries, or mines
  • pairing increasingly automated machinery capable of collecting a lot of data about operations with advanced complementary technologies
  • management tools
  • maintenance services

With farmers and facility operators too busy or not sufficiently trained in data analysis to make the best use of all the data generated, equipment suppliers could offer data analysis services and digital platforms to make actionable data clear. Such offerings could help facilities operate more efficiently and sustainably.

However, such an integrated suite of equipment, software, and services could run into the user-side pressure for right-to-repair. Farmers and other users of heavy equipment have found that high-tech versions of equipment cannot be repaired by themselves or even by local shops, resulting in increased downtime when a problem arises. Not having operational equipment is a real drag on efficiency and could result in precious time lost during planting and harvesting seasons. Still, if equipment can be kept operational longer with less downtime by using remotely assessed software, that problem could be negated at least to a degree.

Freedonia analysts are carefully watching innovations in automation, efficiency, and right-to-repair as a way  to stay abreast of industry trends.

For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, particularly in the Machinery & Equipment area. Recent analysis is available covering topics such as Global Forestry Equipment, Global Mining Equipment, Global Off-Road Equipment Technology 2021, Global Power Lawn & Garden Equipment, and Global Power Tools, as well as Global Construction Equipment (coming soon). Freedonia Custom Research is also available for questions requiring tailored market intelligence.