Farm Machinery and Equipment Manufacturing — Business Survival Rate

An estimated 73% of farm machinery and equipment manufacturing businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 6.0%.

73%
5-Year Survival Rate
+3.4%
Net Growth Rate
2,277
Total Firms
122
Annual Firm Deaths

Is Farm Machinery and Equipment Manufacturing a Good Business to Start?

With a 73% five-year survival rate, farm machinery and equipment manufacturing has an above-average survival rate compared to the national average of roughly 50%. This makes it a relatively safe industry to enter — businesses here tend to find stable demand and sustainable economics.

The annual exit rate of 6.0% is lower than many sectors, suggesting that once established, these businesses have staying power. That said, lower failure rates often correlate with higher barriers to entry or established competition.

Entry vs. Exit Rates

Annual rate of new businesses opening versus existing businesses closing.

Entry Rate (new businesses)5.7%
Exit Rate (closures)6.0%

Net negative: more businesses closing than opening (-0.3 pp spread).

Job Creation & Destruction

10.2%
Job Creation Rate
6.9%
Job Destruction Rate
+3.4%
Net Job Growth

The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 194,709 workers across 2,277 firms.

Want to know how much farm machinery and equipment manufacturing businesses actually make?

See full revenue benchmarks for Farm Machinery and Equipment Manufacturing →

Frequently Asked Questions

What percentage of farm machinery and equipment manufacturing businesses fail?
Approximately 27% of farm machinery and equipment manufacturing businesses fail within their first 5 years. The annual closure rate is 6.0%, with 122 firms closing permanently in 2023.
Is the farm machinery and equipment manufacturing industry growing or shrinking?
The farm machinery and equipment manufacturing industry is currently growing with a net job creation rate of +3.4% per year. New businesses are entering at 5.7% while 6.0% close annually.

Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.