What’s happening in South Western; Eastern and Central Ontario in Construction and Agriculture and what it means for Partrunnr Members*
LiveStock Producers – Beef, Pork, and Poultry farmers and related agricultural enterprises are facing fears about reductions at meat processing plants and jams in the supply chain (some reduction/or shift in consumer demand)
- Can meat processing be decentralized going forward as a risk mitigation strategy?
- Possibility of more farm to table delivery in light of COVID-19 ?
Dairy producers are needing to cutback on milk production, this could mean changing diets/rations and possibly even reducing dairy herd size.
Crop Farming #plant2020
Crop Farmers are watching soil temps and the impending cool rains closely, and weighing it at against some wet soil conditions, while others are happy to see a little dust in the rearview mirror, unlike 2019., which was more consistently wet.
Winter Canola and Winter Wheat have likely been fertilized by now, with an eye being kept on what weeds and pests are on the radar.
Seedbed preparation is underway with corn and soybeans going in. Some experimentation with reduced tillage (no-till, vertical tillage, strip-tillage) is going on as producers are being mindful of input costs. Tile drainage is being repaired. Lots of interesting old-school seeders are being exchanged (Brillion anyone?), with the producers who have embraced VRT everything are demoing how many screens they need to simultaneously watch while they plant and hoping their GPS unit is screwed on the right way.
Is that tractor overkill for what its pulling, or the slope of the field? – Farm machinery operators are commenting on how more horsepower is needed than you think when it comes to wide-row implements with lots of hydraulics. Of course soil compaction is a still a big question, with one soil compaction event having consequences for years – lots of interesting tracks on tractors, and experimentation with tire size and inflation.
So what does this mean for Requestors and Providers on the Partrunnr Platform?
- Sprayers need to be transported between fields and farms
- Supplies like seed; herbicides; seed treatments need to be delivered to producers
- Straw and bedding; hay and feed need to be bought and delivered across the province.
- Mobile Heavy Duty Mechanics may be needed by our users
- hydraulic line repair; tire repairs; expedient filer and oil change assistance
- Ag Construction (tile drainage repairs, barn concrete pours) continues, impact unknown.
There was some early uncertainly about which job sites would be deemed essential in March. Some projects have been wrapped up or put on hold with contractors seeking to ensure they are being paid on time. Prior to wage assistance programs being announces some companies let employees go, the lucky few are being able to maintain pre COVID-19 employment levels, or at least hire back core staff.
A big question is how badly has the economic situation has hurt the value of heavy equipment? New sales, used-sales?
The Heavy Equipment Rental market appears to have taken a hit with rentals being set back; and low prices contracts being offered to renters. In some cases its making more sense for construction companies to buy certain pieces of equipment than it is to rent right now.
Truckers in the U. S. are becoming increasingly price sensitive even amidst the financial strain being felt by COVID-19 issues. Hotshot truckers are voicing concerns over loadboard pricing. Some truckers are doing some jobs at close to cost with very little margin. Thought leaders in the field are asking drivers to boycott loads that pay less than a certain dollar threshold per mile.
What does this mean for Partrunnr Members?
- Peer 2 peer machine sales and rentals will continue to require 3rd party transportation, but at reduced volumes.
- Hotshot truckers, owner-operators need to earn be paid appropriately for hauling loads
- Specialty transportation is being sought after in some cases. Examples could be the need for a double drop down trailer for large agricultural equipment, or a truck and float trailer that can transport construction machinery that weighs over 28 T.
- Some crews are running at reduced capacity and may require more assistance with part pickups; heavy equipment transport and load delivery
What are your thoughts?
Can you think of any pieces of heavy equipment, or have you seen prices that make you think buying it makes more sense then renting right now?
What equipment do you own that is tricky to get moved on a moments notice?
Kate, Julia, Adam and Joe
*note use of twitter feeds does not imply current Partrunnr embership