CAUSE FOR CONCERN? Or a coincidence of timing? by Service Dealer Editor, Steve Gibbs
With more news of dealerships closing their doors for the final time, is the natural churn of the sector to blame - or is it a deeper, underlying issue?
Firstly today, the good news.
As you may have already seen, the date for this year's Service Dealer Conference & Awards has been confirmed by the organising team. Taking place once again at the Stratford-Upon-Avon Crown Plaza, the date for your diary is Thursday November 28th.
I am aware that the crack team at TAP are well advanced in their preparations for the event dedicated to the dealer network, with tons of fantastic content already taking shape. I've been told that I am allowed to say there will be an announcement on here in two weeks time, revealing what the theme for this year's Conference will be!
Next week it's Good Friday, so we'll be pausing for an Easter break (as I know many dealerships do these days too) - and then on Friday April 5th we'll be back with the big unveiling! The excitement is most definitely building!
At this stage it appears that Balgownie are in a slightly different position to Suffolk Agri in that they are undertaking limited trading under the control of the Joint Administrators, with Ifor Williams trailers continuing to be supplied. 24 people have lost their jobs already though according to reports, making for another undeniably sad situation.
Without getting into specifics of individual cases and particular circumstances, with these two stories on consecutive weeks - and I'll be honest, we're hearing quite strong rumours about a third dealership too - it does give rise to an inevitable question:
Are these events just a coincidence of timing or are there deeper, underlying industry issues that are coming to a head this year, affecting certain dealerships' ability to trade effectively?
There is a school of thought that says due to the trend across recent years, particularly in the agricultural machinery sector, of the major manufacturers consolidating their dealer networks, into fewer, larger groups, it leaves smaller dealers who find themselves without a major franchise to represent, vulnerable.
The argument is presented that many farmers are not interested in purchasing a lesser-known brand of tractor from their local dealer who might have found themselves without a big name to sell following the continuing merry-go-round of manufacturer and dealer realignments.
I've had people who know way more about these sorts of things than I do, tell me that regardless of any loyalty felt towards a local dealer, plenty of big arable farms just wouldn't be interested in changing the model of tractor they use on their land to a smaller marque, simply because their closest supplier has had their franchise removed. They will take their business up the road.
Equally though, I've had industry experts tell me that these changes to the overall tapestry of the dealer network should not be to blame for individual businesses going under. Quite the opposite in fact. There is belief that the mergers into so-called 'super-dealers' has prevented some businesses from going broke.
One experienced individual told me, "There is certainly a consolidation trend, but I don’t think it leads to a shrinking industry - just a changing one."
Their belief was that, sadly, some businesses will always find themselves struggling due to their financial commitments, shrinking margins and a poor return on investment. Cash-flow issues essentially.
Also of course, a distinction must be made between the pressures on agricultural machinery dealers and those on garden and commercial turfcare machinery dealers. These markets have separate and unique customer bases, and their desires and constraints in any given season must be taken into consideration.
But what do you, our dealer readers at the sharp end think?
Are these events that we've reported on these past couple of weeks part of the natural churn of the sector, inevitably occurring each season? Or is there something else in the air this spring?
Let us know your thoughts in the comments below, or drop me a line.
Also confirmed is a return to the same venue as last year's edition, with the day's Conference and evening's Dealer of the Year Awards ceremony taking place at the Crown Plaza, Stratford-Upon-Avon.
Owner of Service Dealer, Duncan Murray-Clarke said, "We are incredibly excited about November's Conference & Awards, with preparations well advanced.
"Keep an eye on our Weekly Update for announcements soon of what we have in store for our dealer guests this year."
You can relive last year's event by watching the highlights video below or via Service Dealer's YouTube Channel.
Company says the arrangement will mean improved technical and spare parts back-up as well as additional marketing support for the existing dealer network for both brands.
Opico has added what they describe as two "key brands" to its range of tillage equipment.
By taking on the distribution of Ovlac ploughs and Alpego power harrows, drills, rotary cultivators and flail toppers, the Lincs-based company say they now offer a comprehensive line-up to cater for all approaches to crop establishment.
L-R: Vincenzo Del Ninno, export area manager & Nicola Pegoraro CEO, Alpego with James Woolway, managing director & Robbie Polson, business development manager, Opico Ltd
The company also said in a statement that their takeover of the distribution in the UK will mean "improved technical and spare parts back-up as well as additional marketing support for the existing dealer network for both brands."
Located in northern Spain, Ovlac has been building ploughs for over 75 years. Mouldboard ploughs remain the firm’s flagship product and Opico say the manufacturer is regarded as something of a specialist in shallow inversion tillage with a range of ploughs built specifically for that growing market.
Alongside a full offering of conventional and reversible ploughs from three to nine furrows - mounted and semi-mounted - the company has developed its “Mini” Shallow plough range to work at depths of between 8cm and 20cm.
Ovlac mini shallow plough
Alpego’s range of cultivation equipment, meanwhile, compliments Ovlac’s offering say Opico. Best known for its power-harrows and drills, the Italian company has been specialising in one-pass crop establishment for over 30 years. But its line-up has much greater reach, with a full range of flail toppers, multi-purpose seed/fertiliser hoppers and rotovators available.
Alpego AS-MAX 600 front hopper combined with foldable power harrow 600
Opico say at the Cereals event in June they will have standard and shallow Ovlac ploughs on display as well as a full line-up of Alpego equipment. They also promise a selection of products from both manufacturers will also be on display at the Royal Highland and Royal Welsh shows as well as a host of regional events.
Following appointment, dealer has recruited new members of staff to accommodate the increase in business and further plans for expansion.
Keys Brothers Horticulture Ltd in Hillsborough, Northern Ireland, has been appointed as the only authorised dealer for Toro fine turf and groundscare machinery in Ulster.
From Keys Brothers, Andy Keys (left) and Mark Mallon (right) with Reesink’s David Timms
Following the appointment, eight new members of staff have been recruited by the dealership to accommodate the increase in business and further plans for expansion.
Keys Brothers and Reesink Turfcare have actually been in partnership since 2018 when the company was chosen as a service centre for Reesink.
Andy Keys, director at Keys Brothers said, “Working as a service centre for Reesink was a successful endeavour, so it made sense for that relationship to evolve into us becoming a dealer. We’re 12 months into the relationship and delighted to report a record-breaking start with sales numbers exceeding all expectations.”
Andy continued, “We focus on delivering high performance, superior quality machines and exceptional after-sale service. The combination of Toro being a leading brand when it comes to quality machines and performance, the backup and service Reesink provides, and the face-to-face contact, social media content and industry training we offer, have all contributed to our success.”
David Timms, national accounts manager for Reesink Turfcare, says its notable how the business has focused its attention on its new customer base for great results already. “Since the appointment Keys Brothers’ has focused on winning back business and nurturing relationships, and has in turn amassed a sizeable order bank. Simply putting themselves back in front of customers on a regular basis is proving its worth.
“Their workshops have grown in strength with the additional workload, and they’ve recently recruited additional technicians to the team. If they continue in the manner, then we will have a terrific outlet for the Toro golf and commercial brands for the future.”
Manufacturer says they are delighted to be adding the knowledge and experience of established dealership to their network.
GreenMech have announced the addition of PS Marsden (Lawnmower Services) Ltd to their nationwide dealer network - appointed as sales, service and support partners for the counties of Nottinghamshire, Leicestershire, Derbyshire and the borders of East Staffordshire.
Effective immediately, PS Marsden will be adding the manufacturer's range of towed, tracked and tractor-mounted woodchippers to their already extensive portfolio of groundcare and arboricultural machinery. An established dealer of over 45 years, their Nottingham depot is home to a number of well-respected and recognised franchises.
Commenting on their appointment, Iain Marsden, director of PS Marsden said, “PSM are excited to be working with the team at GreenMech. They have a proven product range and we look forward to delivering sales, service and spares to new and existing customers across our area.“
Martin Lucas, GreenMech sales director, said, “We are delighted be adding the knowledge and experience of the PS Marsden team to our network of nationwide experts. With a bustling arb offering already in their showroom we know that our chipper range, and customers, will both be in safe hands.”
The awards celebrate the achievements of SAPCA members across the sports and play facility construction industry.
The Verti-Top TB from Redexim has been crowned the winner of ‘Product of the Year’ at the 2024 SAPCA Awards.
One of just six awards presented at the annual gala dinner held at the Mattioli Woods Welford Road stadium at the end of February, the machine was also a highly commended runner-up in the ‘Sustainability Award’ category.
Now into their ninth year, the SAPCA Awards celebrate the achievements of SAPCA members across the sports and play facility construction industry. The six categories are designed to highlight the valuable contribution that SAPCA members make to facilities and communities up and down the country.
Shortlisted in two categories, the Verti-Top Tow Behind (TB) works on the same principle as the Verti-Top®1200 and larger 1800 PTO driven series but utilises a 6.5hp engine. This allows the machine to be towed by any vehicle without the requirement for a PTO, thus reducing combined weight while offering cleaning and dust/debris extraction.
On collecting the trophy for ‘Product of the Year’ Paul Langford, commercial director for Redexim UK, said, “We have always been ahead of the curve when it comes to providing the maintenance solutions demanded by the industry and this award reflects the effort of the whole Redexim team to ensure we are continuously meeting the environmental and industry challenges of today, and those into the future."
New solution unveiled utilising virtual reality headsets and the metaverse platform to train dealers.
New Holland used the recent Show Rural Coopavel in Cascavel, Paranà, Brasil, to unveil new solutions developed by their Dealer Technical & Customer Training team, that utilise virtual reality headsets and the metaverse platform to train dealers and others, who are able to connect from different locations and can learn without needing to be physically with the machine in the field.
The New Holland stand at 2024 Show Rural Coopavel in Brazil
The manufacturer says the metaverse solution takes advantage of the virtual immersive environment to connect an instructor with multiple students, wherever they are. They are able to simultaneously perform the same task or be guided by an instructor remotely throughout the entire operation process, in a collaborative learning mode. In virtual reality mode, training is individual, while self-learning mode means following the same metaverse line but without the interaction of one or more people during the activity.
The manufacturer says the advantages of this new solutions are multiple. Training can be done in a safe environment to teach the first operating steps even to inexperienced users. It gives complete teaching flexibility - with the metaverse, students and instructors connect from different locations to learn and teach without the need to be with the physical product or in the operating field.
Currently, this training mode is available on the company's CR EVO 7.90 combine harvester, where it is possible to carry out the complete harvesting operation, take a tour around the machine for full product recognition, climb into the cabin and carry out all operating commands. The operator can harvest a soybean field, practicing the headland manoeuvre at the headland and unloading the grain into a truck.
Additional training is available for the Defensor 2500 Sprayer. Here the technology allows the user to tour around the product and interact with the main components and features, completely operating and spraying with all cabin controls.
Dealership commissioned for cab modifications and to match tractor to distinctive blue and pink livery of chipper, which are raising funds for two cancer charities.
A Massey Ferguson 8735 has received a specially commissioned wrap and cab modifications to match its new trailed woodchipper and continue raising funds for two cancer charities.
Martin Wiles of CFTS Ltd receiving the freshly wrapped tractor from Darren Winstanley, sales manager at KO Machines.
The MF tractor and Mus-Max chipper have been purchased by Martin Wiles, who owns CFTS Ltd, a utility, forestry and clearance company based in the Midlands. He commissioned his dealer, KO Machines in Coven, to colour match his new tractor to the distinctive blue and pink livery of his recently purchased chipper.
The original colour scheme of the chipper was added by Mus-Max dealer Ben Price in 2021 and, after Martin purchased the MF 8735 to run the chipper, he wanted to continue Ben’s work in raising awareness for Cancer Research UK and Young Lives vs Cancer.
Martin explains why he wanted to do it. “Cancer affects everyone, and my business wouldn’t be where it is now without my Nan, who passed away from cancer. We need the chipper for most of our clearance sites across the country, and I didn’t want to just put any tractor on the front of it. Getting the tractor wrapped, and changing the colour of the bonnet grills from red to black, will continue raising awareness and donations, and it is nice to see a Massey Ferguson in a forestry environment.”
The colour matched tractor and chipper will be raising awareness for two cancer charities
Although the tractor had the required power to run the chipper, the cab controls required a fundamental redesign. Darren Winstanley, sales manager at KO Machines, describes the modifications, saying, “We installed a new 360º seat base so the user can turn to face the rear of the cab and operate the chipper. The multifunction armrest and screen turn with the seat and fold up as the seat turns. The major change in the cab has been replacing the small rear window that is used to view the pick-up hitch and install a solid box allowing space for the operator’s feet and foot controls.
“When in the rear position, the armrest and screen are folded back into place and the chipper controls are lowered down towards the operator for comfortable use. It proves that although forestry operations aren’t a common choice for MF machines, with some modifications, these tractors can be equipped to offer users long term reliability and a comfortable working environment.”
Martin is delighted with the final outcome and says the project wouldn’t have been possible without several other companies being involved. “OCS Group UK Ltd, Ben Price, KO Machines, and Allan James Financial Services have all supported the project from the moment I told them about it, and it proves what can be done when working together.”
The value of the woodchip from the combinations first job in Cambridge for OCS Group UK Ltd is being donated to the charities. Landowners on future sites where Martin is working are encouraged to donate some or all the value of the chip, after chipping and haulage costs, to the two charities. Further donations can be made via Just Giving.
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