“That market continues to be affected by the slowdown in single-family housing starts and can also be relatively sensitive to interest rate increases. And so, as that end market continues to be slow, we'll underproduce yet another year in 2024.”

In context

“differences between the segments, maybe starting with production and precision ag. In North America, we have positioned ourselves really well, and we will be able to produce in line with retail demand for 2024. Where you're seeing our financial guide a little bit lower than our broader industry guide is really due to Brazil, where we will be underproducing retail demand in 2024 as we work to bring inventory levels back to our targeted levels for that particular market. So that's really what's affecting our financial guide relative to the industry guide for production and precision ag. For small ag and turf, the story there continues to be around small tractors, our compact utility tractors, where we'll see another year of underproduction to bring inventory levels back down a little bit. That market continues to be affected by the slowdown in single-family housing starts and can also be relatively sensitive to interest rate increases. And so, as that end market continues to be slow, we'll underproduce yet another year in 2024. I would say, for the rest of small ag and turf, we'll have the ability to produce largely in line with the industry. As it relates to construction and forestry, the story there is a little bit different. You saw the industry at large build inventory in 2023. We did build some inventory, but certainly not at the pace that the broader industry did. And so that we actually may have a little further inventory build yet to come in 2024, but it will be an inventory build to a lesser extent than what happened in 2023. So that will drive lower shipment volumes year-over-year relative to the industry there. So it's a little bit different story depending on what segment we're talking about, but that's the reconciliation -- the broad reconciliation of our financial guide to the industry. Josh Je”