Deere well-positioned to seize the opportunities ahead

John Deere tractor and baler unloading bale

For more than 175 years, John Deere has capitalized on opportunities associated with a growing, more prosperous world. Today, broad trends based on population and income growth, especially in developing nations, are driving agricultural output and infrastructure investment. Further, technological advances and agricultural mechanization are opening and expanding markets.

We believe John Deere is exceptionally well-positioned to seize these opportunities. In so doing, we will fulfill our mission of helping improve living standards for people everywhere through our commitment to those linked to the land.

Construction worksite with the city skyline in background

Over the long-term, favorable tailwinds hold great promise for our company.

For starters, the world’s population is growing steadily. By 2050, about 9.7 billion people will be living on our planet versus about 7.3 billion in 2016. What’s more, many people will be moving into the middle class. They will be enjoying more prosperous lifestyles and diets that include more grain-intensive foods such as protein. That means more demand for farm commodities – a lot more, in fact. It is estimated that agricultural output will need to nearly double over the first half of the century to meet projected demand for food, feed, fuel and fiber.

Society is becoming more mobile, too, and increasingly rooted in urban areas. By 2050, nearly 70% of the world’s population is expected to be living in cities. That will result in a smaller labor pool in rural areas and more need for mechanized farming. A larger urban population also leads to a bigger requirement for housing, roads, bridges, and other infrastructure investments.

All this supports our belief that John Deere will benefit from a rising need for productive farm, turf, construction and forestry equipment in the years ahead.

Man driving John Deere tractor in field
Growth businesses – Agricultural and Construction equipment solutions – are in the best position to capitalize on global growth and development created by these economic trends. They'll fuel our success as we help meet the challenges of increased agricultural output and infrastructure.
John Deere tracked feller buncher transfers logs in the forest Complementary businesses – Turf and Forestry equipment solutions – support and enhance our worldwide channel development. They defend and grow market share in specific, targeted markets, while enhancing our financial performance.
Dealer employee helping customer at service desk Supporting businesses – Financial Services, Power Systems, Parts Services, and the Intelligent Solutions Group – strengthen and differentiate our other equipment solutions.
Dealer employee helping customer next to tractor
For the past decade, one key to our success has been our foundational success factors: Exceptional Operating Performance, Manufacturing and Supply Excellence, Distinctive Product Quality, Extraordinary Global Talent, and Civic and Environmental Stewardship. They have guided our success and are essential to our future. We must leverage and build on these core strengths.

Future successes, though, will demand even more of us. Therefore, we're building our strength in five additional capabilities: Delivering Measurable Customer Value, Technology and Analytics Leadership, Best-in-class Integrated Solutions, World-class Distribution System, and Winning in Aftermarket. These success factors are critical in order to achieve sustainable SVA growth through innovation and disciplined expansion.

Shareholder Value Added (SVA) – the difference between operating profit and pretax cost of capital – is a metric used by John Deere to evaluate business results and measure sustainable performance.

Our world and business are changing. Our core values remain.

Dealer employees talking with customers in the field
How we do business is critical to our continued success. The "How" is represented by our core values of Integrity, Quality, Commitment, and Innovation. You see the "How" in our people, products and processes. You recognize it in how we operate every business, every day, and in the ways we treat employees, customers, suppliers, dealers, and other stakeholders.

Our core values define us. They unite us and differentiate us from competitors.

Our commitment to these core values is not optional, and never wavers.

Stock Quote

117.48 +0.96 ( +0.82% )
Volume 3,052,646
08/22/2017 Pricing delayed 20 min More

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