REGINA – Made in Canada stickers can be a big roadblock for Canadian farm equipment manufacturers trying to sell their machinery in the United States.
“If you are selling into some of the markets in the States, you have to expect that some buyers are looking for Made in America to be on the machine,” says Earl Schulte of Schulte Industries.
“We do 50 percent of our business down there though, and it is the only large growth market that we can see right now.”
Schulte’s company, which makes rotary mowers and rock and snow removal equipment, has a well established distribution system in the U.S.
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“In some cases, you have to compete harder than if your product said Made in America,” Schulte said.
Don Henry, of Brandt Industries in Regina, agreed.
“For some buyers, they want to know it was made in the (U.S.); for others it is just a matter of knowing that they can buy parts in the U.S.”
Brandt makes grain handling and short-line farm equipment.
Ray Malinowski, of Leons Manufacturing in Yorkton, Sask., knows the importance of the U.S. market to his company and the place Canadian products have there. Leons produces short-line farm equipment and industrial loaders.
“American farmer buyers often seek out Canadian products because they have a reputation of being well made and tough,” he said.
“On the other hand, they want to have an American parts supplier and after sales service.”
More than 60 percent of Leons’s annual sales are made in the U.S. and the company has a warehousing and parts operation in Minot, North Dakota.
Made in North America
Larry Schneider, president of the Prairie Implement Manufacturers Association, said his organization has tried to help its members by creating a Made Co-operatively in North America by Canadians and Americans” sticker. He said it’s hoped these stickers will lessen the impact of the Made in Canada emblem required by international law.
Schneider said visits to trade shows in the U.S. have shown him that American dealers are sensitive to the Canadian origins of some equipment.
“You don’t see the (Canadian) equipment line name or manufacturer name at the (trade show) booth,” he said.
“You do see the local, American dealer’s name all over the place.”
An economic development officer for the town and surrounding counties of Beulah, N.D., was at the Farm Progress Show in Regina last month, hoping to take advantage of this dilemma.
John Phillips was looking for Canadian short-line farm equipment dealers who are interested in moving to the U.S.
“There is no question that Made in America has a lot of impact on the buyers down here,” he said.
“In some of the southern states, it is a very big deal. That should attract Canadian businesses looking to get the right to use an Assembled in America label.”
Farm equipment manufacturers at the show insisted they want to remain Canadian, but agreed there is a need for American addresses.
