Argo Tractors: Navigating Challenges in the Agriculture Industry through Specialization and Partnership

Argo Tractors is a family-owned manufacturing company that specializes in the production of tractors. They are committed to providing high-quality products that are engineered, developed, manufactured, and distributed across more than one hundred countries worldwide. With two historic brands, Landini and McCormick, Argo Tractors has established a longstanding relationship with DLL since 2001, expanding their cooperation to countries such as the US, Canada, Chile, Germany, France, UK, Ireland, Spain, and Portugal.

Challenges in the Agriculture Industry

2023 promises to be a challenging year for agro-mechanical industry, with the uncertainties caused by the international crisis and the increase in the price of materials and energy. However, Argo Tractors is keenly aware of the key role it plays in the sector and is equipped with the necessary tools to continue its activity with determination and success, supporting the market, customers, suppliers, and the whole community.

Argo Tractors shared some insights into the challenges they face as a manufacturer and the future trends they anticipate in the agriculture industry. From a manufacturing viewpoint, the main challenge is to keep investing in process and product evolution due to the regulatory changes in the industry, particularly regarding emissions. The engine emissions standard evolved from tier 0 to 5, which requires manufacturers to invest heavily in product development.

From a customer viewpoint, the main challenge is productivity, which has become increasingly important due to 20 years of consolidation in the size of farming. Argo Tractors noted that the main evolution in their business will not only be connected to the product, but also to the digitalization of agriculture, which includes the capability of the farmer to use data to increase his own productivity, stay profitable, and keep investing in the farming operations.

Partnership with DLL

"Back in 2009, we made the strategic decision to switch our financing partner in Spain from our previous provider to DLL. Having enjoyed a positive relationship with DLL in other countries since 2001, we were keen to strengthen and enhance our presence in the Spanish market," explained Simeone Morra, Corporate Business Director at Argo Tractors.

Argo Tractors chose DLL as their preferred partner in Spain because they believed that the close personal relationship they shared would provide a viable solution for inventory finance and retail finance to facilitate growth. "At the time, we held around 6% of the market share in Spain, but I'm proud to say that as of 2021, we've grown that figure to 8.5%. A big part of that growth can be attributed to the strong partnership we've forged with DLL in Spain," Simeone revealed.

"As a family business, we were looking for a financial partner that could support our expansion across multiple countries, while also offering competitive products and a strong relationship that we could leverage."

Financial Solutions for Agriculture

Agriculture is a constantly evolving market, and specialized operators, such as contractors or large farms, can benefit from cutting-edge technology, but also from financing and leasing offers for the purchase of agricultural equipment. Landini Finance and McCormick Finance offer, through DLL expertise, complete financing solutions that can meet every need thanks to experts in the agricultural sector, and every year, the numbers show an increase in the use of financial instruments to support the purchase of agricultural equipment.

Argo Tractors is relaunching their action with a continuous implementation of their production, research and development, environmental sustainability, safety, and constant attention to the human factor. They concluded 2022 with great successes, giving them the strength and awareness to start 2023 with the same determination and broad development scenarios. They will also work with their subsidiaries and importers all over the world to implement their products and services and to respond ever more quickly and efficiently to the needs of the customer, as well as to develop their global market share.

Overall, Argo Tractors' focus on being tractor specialists and their partnership with DLL has allowed them to navigate the challenges in the industry and achieve growth in important markets. As the agriculture industry continues to evolve, they anticipate that the digitalization of agriculture and the evolution of tractor propulsion will be the main trends to watch.

For more information on how DLL supports the agriculture industry, visit DLL’s Agriculture webpage. Additional information on DLL’s inventory finance solution can also be found on the Commercial Finance webpage.