WHAT A YEAR TO REMEMBER No one foresaw what would lie ahead in 2020 by Service Dealer Ireland Editor, Alan Mahon
Despite all the setbacks, both socially and economically of 2020, most people are quite positive about the future.
When I wrote my last blog of the year in 2019, little did I, or anyone else, foresee what would lie ahead in 2020.
A week after that blog, on the 30th December, the world learned of a new deadly virus that would, and has changed the course of everyone’s lives. The saying ‘having 2020 vision’ was very appropriate at the time, given the year that would lie ahead.
Yet, despite all the setbacks, both socially and economically, most people are quite positive about the future. From our own industry point of view, the spring of 2020 was tough for dealers. In March, non essential businesses closed for almost three months, reducing sales of tractors and machinery. But recent surveys have shown that sales have rebounded and figures show that tractor sales, in particular, have almost matched with what was sold in 2019.
From an industry point of view, one of the things that stood out for me in 2020 was the increase in demand for robotic and battery operated mowers, mainly for the domestic market. However, big strides have been made with these machines for the commercial sector, especially sports pitches, with some companies boasting that their robotic mowers can mow up to 12 acres. I’m sure we will hear a lot more on these developments in 2021.
So what lies ahead for 2021? I hope that by the early summer of 2021, with all the vaccines that are being approved of to fight off Covid-19, we can start getting back to a more normal life, whatever that will mean. I hope that this new normal life will mean people can gather once more outside to attend demonstration days and trade fairs (even attend live concerts), and that trading in our sector will have no more restrictions. Maybe the traditional hand shaking over a deal will be back with us once again and, dare I say, the spitting into the hand before that handshake – though I think that might be a step too far in these virus ridden circumstances. I also hope that people will be allowed to attend outdoor sport events such as GAA matches, golf, football and rugby. These are sporting activities that our turfcare dealers depend on so much.
As I write this blog, the Brexit deal has yet to be sorted. This could have far wider implications than Covid-19 ever had. Diseases will come and go but Brexit will be here to stay and its impact will have far wider consequences for Ireland, particularly the agricultural sector, which our industry relies upon so much. It doesn’t help our industry if farmers go out of business and those that remain cut back on purchasing new equipment. Will spare parts coming from the UK be more expensive? What implications will it have on companies that export machines? These are just some of the questions that currently remain unanswered.
To finish off, I would like to wish you and your family a very happy Christmas and I hope that 2021 will bring a much improved year for you.
The completion of the first-ever fully built Jacobsen HR800 mower is a seminal moment for the brand.
Production of the first-ever HR800 has been completed at the Ransomes Jacobsen Centre of Excellence in Ipswich, England.
The completion of the first-ever fully built Jacobsen HR800 mower is a seminal moment for the brand. Production has been moved to the factory in Ipswich, UK so investments in skills and developments in mower production could be focused on a single facility.
Jacobsen factory team with Matt Pipe
Jacobsen key account manager Andre Andrade, who hails from Augusta, GA has observed the progress of the mower throughout the build.
“It has been great to start production of the HR800, and to see the first fully assembled machine is exciting,” Andre begins. “Bringing all Jacobsen production to England is an important step for us, and everyone at the factory has been eager to get it underway. The situation with Coronavirus has caused challenges all over the world, but for us, it has solidified our relationship with our colleagues in America who have assisted our production team leader, Matt Pipe, during construction.
“Matt has worked almost singlehandedly, producing this mower, and as a result, we now have someone who is an expert. When it comes to customer support, that will be a huge asset because in Matt we have someone who can offer in-depth advice because he has an insight into that machine that no one else has. Over time that knowledge will be shared with the engineers in the factory and the sales team, so we will all have a strong understanding of the product as we do with the others we produce here.”
Completing this project has taken over two months, from picking parts from pallets to the finished mower. It has been Matt’s biggest challenge in his eight years at Ransomes Jacobsen and one he has taken great pride in.
He explains: “I’ve been here for eight years, and I was around for the BETA build of the MP, so to be able to do this is quite something for me. I’m really proud of what we produce here at the factory, and I’m proud to be able to say that I was the first to build the HR800 in the UK.
“It has been a unique opportunity to learn everything about this mower because we started with technical drawings and parts on pallets through to the finished product. Doing that means I’ve been able to use what I already know and work with the production engineers on certain areas, and Antans Lukisis on the hydraulic system so I’ve constantly been learning throughout the process. I think that’s what has made it so enjoyable.”
U.S manufacturer Monarch Tractor have introduced what they describe as the world’s first fully electric, driver optional, smart tractor integrated on a single platform.
U.S manufacturer Monarch Tractor have introduced what they describe as the world’s first fully electric, driver optional, smart tractor integrated on a single platform.
The company says the innovation addresses the issues faced by farmers of labour shortages, climate change concerns, and increasingly stringent environmental regulations by combining electrification, automation, machine learning, and data analysis. They also say they have secured several hundred working farms as preliminary customers.
To see some of the key features of the Monarch Tractor in action watch the below video:
Praveen Penmetsa, co-founder & CEO, Monarch Tractor said, "Monarch Tractor is ushering in the digital transformation of farming with unprecedented intelligence, technology and safety features.
"We have assembled a world-class team of farmers, engineers, and scientists to meet today’s farming demands and are empowering farmers by giving them intelligent tools to collect more predictive data to implement sustainable practices, better share their story and make more money. Hundreds of farmers have signed on to receive a Monarch Tractor and we look forward to delivering a new level of sustainability and efficiency to their existing farm operations."
The company says the unit has a starting price of $50,000 and can be reserved now. Shipping will commence in autumn 2021.
Carlo Mondavi, chief farming officer, at Monarch Tractor added, “As a fourth-generation farmer, I’ve seen firsthand the hazards that farming presents not just to workers, but to the environment as well. Monarch Tractor is moving farming toward a safer and sustainable future by eliminating harmful emissions, reducing the need for herbicides and keeping workers out of harm’s way with its driver-optional capabilities.”
The County Mayo club facilities are being maintained by a new Swift rollermower in 1.9 working width.
Kiltimagh Knock United Football Club officially formed in 2002 but it already had a history of playing prowess at all levels of competition. The club has sent plenty of players to football trials in Southampton and Newcastle, and underage stars Luke Byrne and John Mountney would consider Kiltimagh Knock as their home club.
Martin Mannion, groundsman at Kiltimagh Knock Utd FC
The County Mayo club facilities, located just two miles up the road from Knock Shrine, was opened in 2005 and Groundsman Martin Mannion has been maintaining the grounds since. “I started in 2006 so I know all the grounds around here,” begins Martin. “The weather is the main obstacle – we cut the pitch twice a week, sometimes three times a week if the rota is fairly active. Getting out to cut on a fine day that’s the main obstacle but we do get it done.”
Martin says getting through the mowing schedule has become easier with the new Swift rollermower in 1.9 working width. The MJ71-190 replaces a Major rollermower that was purchased back in 2001. “It was a very good mower, we never had any issues with it,” says Martin. “It worked perfectly – just sharpen the blades and grease it and that’s it really.”
The upgraded MJ71-190 delivers the same fine turf finish of a cylinder mower without the high maintenance requirements. “You have a lovely clean cut and no clumps of grass left behind,” says Martin. Gearbox driveline powers the blades that overlap by 60mm. With blade tip speeds at an impressive 75m/s and full length roller, a striped finish is guaranteed.
The height adjustment from 10mm-130mm makes it easy to mow in various conditions and requirements. “We keep it on low setting in the playing area because if the grass is any longer it interferes with the game,” explains Martin. “The surrounds can be cut at a higher setting.”
Made with high performance Strenx structural steel and hot-dip galvanised, the Swift rollermower is built to last. “It’s a solid machine,” Martin concludes. “We had a Major topper here before and it lasted a good 18 years so they’re a trusted brand. If the 1.9m Swift lasts as long we’d be very happy.”
The Toro Company say their strong fourth-quarter results were driven by continued sales growth in their residential segment and a rebound in their professional segment.
The Toro Company this week reported results for its fiscal fourth-quarter and full-year periods ended October 31, 2020.
The company says that Q4 net sales were $841 million, which is up 14.5% year over year.
Whilst full-year net sales for 2020 were $3.38 billion, which is up 7.7% versus last year. The residential segment net sales were up 24.1%.
“Our strong fourth-quarter results were driven by continued sales growth in our residential segment and a rebound in our professional segment,” said Richard M. Olson, chairman and chief executive officer.
“Residential sales were robust across all channels with strong demand for our new product lineup, accentuated by refreshed branding, an extended selling season, and stay-at-home trends. Improved demand for our professional products reflected greater business confidence from our customers and increased home investments. The integration of our Venture Products acquisition added another strong brand with multi-season products, contributing incremental sales in the quarter.
“Our momentum and continued investments position us well for success in the new fiscal year,” continued Olson. “We have a strong portfolio of businesses and deep customer relationships, a dedicated team and channel partners, and innovative products and emerging technologies aligned with customer needs. We will remain sharply focused on business execution as we continue to face uncertainty due to the ongoing pandemic."
FOURTH-QUARTER FISCAL 2020 FINANCIAL HIGHLIGHTS
Net sales of $841.0 million, up 14.5% from $734.4 million in the fourth quarter of fiscal 2019.
Net earnings of $72.2 million, up 88.7% from $38.3 million in the fourth quarter of fiscal 2019; *Adjusted net earnings of $69.2 million, up 33.5% from $51.8 million in the fourth quarter of fiscal 2019.
FULL-YEAR FISCAL 2020 FINANCIAL HIGHLIGHTS
Net sales of $3.38 billion, up 7.7% from $3.14 billion in fiscal 2019.
Net earnings of $329.7 million, up 20.3% from $274.0 million in the prior-year period; *Adjusted net earnings of $327.7 million, up 1.1% from $324.3 million in fiscal 2019.
OUTLOOK
The company is providing full-year fiscal 2021 guidance based on current visibility, although there continues to be considerable uncertainty given the potential effects of COVID-19 on demand levels and timing, its supply chain and the broader global economy.
For fiscal 2021, management expects total net sales growth in the range of 6.0% to 8.0% and *adjusted EPS in the range of $3.35 to $3.45 per diluted share. This estimated adjusted diluted EPS range excludes the benefit of the excess tax deduction for share-based compensation.
Claas Group has announced record sales in its 2020 financial year, rising 3.7% to 4.042 billion euros despite the pandemic and shut-downs in production.
Claas have announced that they increased their sales in the 2020 financial year by 3.7 percent to 4.042 billion euros (previous year: 3.898 billion euros).
Pre-tax earnings rose to 158 million euros (previous year: 136 million euros), whilst their free cash flow achieved a substantial turnaround into profit with 308 million euros (previous year: -138 million euros).
"Claas managed to achieve growth in sales and to improve profitability despite the pandemic and shutdowns in production. In the process, our widespread international presence has paid off,” said Thomas Böck, chairman of the Claas Group Executive Board.
Whilst sales in Germany, France and the other Western European countries remained stable on the whole, they grew significantly in Eastern Europe and especially Russia. At around 20%, the company achieved its strongest growth in sales outside of Europe, with North America proving to be the most important growth driver.
Despite the effects of Covid-19, the company says investment in major projects, such as at the company’s Le Mans tractor plant and at Harsewinkel continued. In addition they completed the new Class UK headquarters at Saxham, Suffolk and they launched the new 15ha Technoparc centre in Ymeray, France.
Despite uncertainties including the ongoing pandemic and the political situation for farmers in core markets, Claas say they expect sales and earnings for the current 2021 fiscal year to remain at the previous year's level.
The OPEI has released its December forecast, showing record growth across the U.S industry despite an ongoing pandemic and downward market pressures, and predict continued positive activity into 2021.
The American trade association, the Outdoor Power Equipment Institute (OPEI) has released its December forecast, showing record growth across the industry in the U.S, despite an ongoing pandemic and downward market pressures, and predict continued positive activity into 2021.
Kris Kiser, President and CEO of the OPEI
“We’ve seen very real, significant positive market dynamics across many of the segments we track,” said Kris Kiser, President and CEO of the OPEI. “While this year has been very challenging, the industry has stepped up to continue making and shipping necessary equipment, helping many Americans get outside and work in and reconnect with their living landscapes.”
Kris added, “We expect demand for outdoor power equipment to remain strong into 2021 as homeowners expand their connection to their living landscape and invest in the maintenance of their outdoor spaces. Consumer demand remains high, and inventories at outdoor power equipment dealers remain tight.”
Overall, the industry in the U.S saw shipments of outdoor power equipment increase by more than 5 million units - a jump of 16 percent from last year - and those levels are expected to remain elevated in 2021.
The OPEI say this year has seen expansion of both petrol-powered and battery/electric equipment, with all electric and battery powered segments tracked by OPEI posting double-digit growth. “The industry continues to expand its power offerings for commercial contractors and homeowners,” Kris said.
Consumer lawnmower shipments grew more than 15 percent in 2020, with 7.7 million units shipped.
Commercial lawn mower shipments are down about 5 percent in 2020 compared to 2019, with more than 308,000 shipped, but are expected to grow by more than 5 percent in 2021.
Handheld power equipment shipments grew by more than 17 percent in 2020, with 29.3 million units shipped.
“Commercial products are down a bit this year, as professional landscape contractors have been conservative during this period of uncertainty. They’ve been saving and will likely be in a strong cash position in the spring,” Kris said. “Manufacturers expect significant commercial investment in spring of 2021, and we expect this sector to grow by more than 5 percent next year.”
OPEI forecasted projections use as their basis the compiled monthly shipment data reported by OPEI members, constituting more than 90 percent of all shipments in the U.S. market. OPEI projections reflect shipments of products to include all power sources.
A long-term partnership has been agreed between AGCO/Fendt and the maker of specialist combine harvester headers, Carl Geringhoff Vertriebsgesellschaft mbH & Co. KG.
A long-term partnership has recently been agreed between the agricultural equipment manufacturer AGCO/Fendt and the maker of specialist combine harvester headers, Carl Geringhoff Vertriebsgesellschaft mbH & Co. KG, based in Ahlen, Westphalia, Germany.
Geringhoff is known as a manufacturer of draper headers, corn pickers, headers for special crops and folding headers - which AGCO say are the perfect complement to Fendt units.
Geringhoff's products include draper headers with flexible cutterbars, and with a split frame and reel for ground adaptation, and an optional flexible cutterbar for low pickup losses in stalk and bean cutting. Fendt customers will also be able to use headers with a working width of up to 13.70 m with their combine harvester in the future. Geringhoff also provides special sunflower and millet heads.
"These headers are an excellent complement to our existing range, and we can now provide solutions for all our customers", said Christoph Gröblinghoff,chairman of the AGCO/Fendt Management Board, referring to the collaboration with Geringhoff.
Geringhoff's headers are sourced through sales partners and fully managed by Geringhoff, with them or the sales partner taking care of the purchasing, processing, service and after-sales side of Geringhoff products. Geringhoff headers are sold in Europe, North America, Australia, New Zealand and Africa.
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The Briggs and Stratton Pre-Season is now available via the Kramp webshop.
With over 110 years of experience, Briggs & Stratton are trusted by millions of users around the globe and backed by the largest service network in the industry. As a leading manufacturer of power generation, lawn and garden turf care and job site products, you know it's a brand that can be trusted.
The Briggs and Stratton Pre-Season is now available via the Kramp webshop. Take the opportunity to make huge savings on a wide range of top-quality items.
To take advantage of the offer, please log in to the Kramp webshop to see the catalogue and fill in the order form, or remember you can contact your account manager for more information.
Link to Kramp webshop - https://www.kramp.com/shop-gb/en (Please remember to log in to your account to see details and place your order, T&Cs apply)
SHOWCASE YOUR NEW PRODUCTS HERE Have your new equipment seen first!
Use this Ireland Weekly Update to showcase your new products to our ever-growing community of specialist dealers.