John Deere says it will slow production of agricultural equipment by 20% at certain facilities starting in the second half of 2019. Trade uncertainty and other pressures on the agricultural industry—such as the wet weather conditions affecting much of the U.S.—are among the reasons given by the company.
The output reductions will mostly be focused on large equipment for the North American market. Doing so will help the company better position itself for 2020.
According to the company, higher freight costs, unfavorable product mix and overall uncertainty, as well as decreased production volume are causing many manufacturers in the industry to reduce margin projections by 1% this year.