HYDRAULIC equipment manufacturers in Western Australia say the state’s mining boom is having a detrimental effect on production for the agricultural sector.
As a result of increasing steel prices, the tightening of component supplies and the loss of skilled labour to the mines has lead to blow-outs in the costs of equipment.
According to the Tractor and Machinery Association, steel price increases of up to 20% every six to eight weeks since January have been damaging. In this time hydraulic equipment prices have been raised by between 30% and 100%, depending on the product.
Manufacturers claim they will not be able to meet demand for items like hydraulic cylinders, valves and hydromotors in the immediate future.
They say a focussed government and industry initiative is need for a long term solution.
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