Argo Tractors does not hold back on investment: target 1 billion turnover

Argo Tractors is still the only company in the province of Reggio Emilia that designs and builds tractors, then distributes them in over 100 countries worldwide. "We have always been based here, in Fabbrico. The Landini brand was born here in 1884 and has contributed to the development of the Motor valley and the consolidation of a supply chain that is fundamental to the motoring excellence of this land, from which the biggest automotive brands have sprung. It is this local supply chain that is the reason why we have brought production previously delocalised to France and England back here. Here there are skills and know-how that are difficult to replicate in areas of the world that enjoy lower production costs, and we have at our disposal advanced technologies without necessarily developing them all in-house'. Alberto Morra, a member of the Management Committee of the group that this year celebrates 140 years since the birth of the parent company Landini and 30 years since its acquisition by the Morra family, from which the Argo Tractors group will be born in 2007, including the McCormick brand acquired in 2000.

A family-owned multinational with a turnover of over 700 million euro and 2 thousand employees that exports over 80% of its tractors '100% Made in Reggio Emilia', the province where the group has concentrated all its factories and where it reinvests over 30 million euro every year in research and development. The latest investment is the Campagnola site: "Dedicated to the technological development and manufacture of mechanical transmissions and powershifts, strategic components that make an important contribution to the value of tractors, it is a production plant that raises the level of specialisation and quality control, as well as reducing processing times," says Morra, describing the new plant, points out Morra, describing the new state-of-the-art site, operational since the beginning of the year, 30 thousand square metres with 4 assembly lines differentiated by power and range where 150 employees work and where the Kaizen industrial production philosophy of continuous improvement is applied, as in all Argo Tractors plants.

The billion euro turnover target set before Covid remains confirmed, 2023 has already led to a doubling of the 2019 performance, but the nine-zero milestone is shifted forward. "Already in the second half of last year the world tractor market began to show a negative trend," says Morra, second generation at the top of the group, "with declining orders and an increase, at the dealer network, of new and used stocks. The international context is not helping: I am referring to the high cost of money, the climatic challenges, the protracted Russian-Ukrainian war, the conflict in the Middle East, the recently concluded elections in Europe and those expected in the United States, as well as the falling prices of agricultural commodities, which have generated a state of uncertainty that still affects the propensity to invest in agricultural machinery".

For 2024, estimates speak of an overall contraction close to 28% of the world market. "In the first six months of 2024, we recorded a 10% decrease in turnover compared to last year," adds the manager, "after an excellent 2023 that grew by double digits, but this is not slowing down our R&S projects, to which we dedicate 5.5% of annual turnover.

At the Fabbrico headquarters, the Factory School, a school for in-house specialisation and lifelong learning, has been strengthened and digital solutions for managing the tractor fleet and farm efficiency are in full development, from ISObus technology to remote diagnostics, from GPS satellite guidance systems to Apps with agronomic models, prescription maps, and sensor integration in the name of traceability and sustainability.