Welcome to the first edition of Service Dealer Ireland for 2023. I hope you had an enjoyable Christmas with your families and loved ones. I wish you all the very best in health and prosperity for 2023. I hope you are still on track with your New Year resolutions.

2022 saw a mixed set of fortunes for our industry. On the bright side we saw, in January, the relaxing of lockdown rules. People could now come to our showrooms, without restrictions on numbers entering the premises and not having to wear masks. However, in February, the war in Ukraine broke out, causing energy prices to sky rocket, which created an added expense to running our businesses. Supply shortages of parts and equipment continued. Even though order books were full, these supply shortages meant delays in delivering products to our customers.

2022 saw the first Farmdroid machine arrive in Ireland. This robotic ‘tractor’ that plant and weed up to 10 hectares of land. It is powered by a large solar panel acting as a roof. No human operates it and can operate both day and night. Could this machine gain traction for popularity in 2023? 

I am hopeful that 2023 will be a lot better. I believe that the backlog of orders will ease and that we will, once again, be able to deliver, on time, to our customers. One issue that will be a challenge for us in 2023 will be the continued saga of recruitment. Hiring in trained staff has always been a problem in our industry. Thinking of unique incentives to lure in potential employees will be one way of getting over the problem. According to the latest CEMA figures, in 2019, there were almost 3,000 people employed by dealers and distributors in Ireland. These figures can be viewed in the recently published CEMA Industry Report for 2022. The Report also says that Germany was the largest employer in the agricultural equipment sector in 2019 with 48, 452 employed in agricultural equipment manufacturing and 30,142 employed by distributors and dealers.

So what is in store for the coming year? The demand for robotic mowers and electrically powered equipment will probably still continue to grow. The International Federation of Robotics (IFR) predict an increase of over 15% of agricultural and horticultural robotic machines in 2023. Their joint survey reported 19,000 robotic units sold in 2022 and see this rising to 22,000 in 2023. Should that figure ring true it will see a more than doubling of such equipment since 2019, when 10,000 units were sold.

The quest for finding alternative fuels will be high on the agenda in 2023. There hasn’t been much of a breakthrough but methane gas in liquid form and hydrogen could be the way forward. Some of the big tractor manufacturers, such as New Holland, are already working on these developments.

Looking more to the immediate future, I would like to remind you of the up and coming shows that are happening this month. Tomorrow and Wednesday (10th & 11th Jan) will see the staging of the LAMMA 2023 farm machinery show. It will be held at the NEC Birmingham and will see over 600 exhibitors showcasing the latest tractors, combines, arable and grassland machinery, as well as a wide range of new technology, services and tools for every sector. Visit www.lammashow.com to register or find out more.

For those of you who would rather stay nearer to home, this Wednesday and Thursday (11th & 12th Jan.), the Association of Turfgrass Professionals (ATPI) will hold their conference at the Galmont Hotel & Spa in Galway. The event includes a trade show that will include machinery stands. An outdoor demonstration of equipment will be held at Galway Bay Golf Club on Thursday the 12th of January. To register to attend the conference, or to find out more visit www.atpi.ie 

At the end of the month, the biggest turf management exhibition in Europe takes place from January 22nd – 26th. This is of course BTME and it will be held at the Harrogate Convention Centre, England. To find out more visit www.btme.org.uk  

The STIHL Group has announced they are planning to acquire Cosmos Manufacturing Inc., a U.S.-based manufacturer of mufflers.

Cosmos, a current STIHL development partner and major supplier of mufflers, is headquartered in South Chicago Heights, Illinois, USA and employs some 200 people in the development, production, and sale of muffler systems and stamped components for small and medium-sized engines.

"This acquisition will deepen our expertise in the development and manufacture of mufflers and other exhaust components," said Martin Schwarz, STIHL executive board member for manufacturing and materials.

"This represents a major step forward in achieving increasingly strict emission standards and also reinforces our supply chain resilience." 

Like STIHL, Cosmos is also a family-owned business. The founder of the company, John Michelon, is withdrawing from the business due to his advancing years. "Cosmos and STIHL have maintained a successful partnership for decades," he said. "I am happy to have secured the future of the company through the takeover and am confident that Cosmos will be able to operate to its full development and manufacturing potential as a part of the STIHL family."

STIHL say the transaction is set to take place as an asset deal, with the founding of a new company in the United States called CS COSMOS STIHL Manufacturing. The new enterprise will take over the employees and existing customers and suppliers and continue Cosmos' business seamlessly and without interruption. 

Cosmos Manufacturing Inc. produces 9 million mufflers annually and supplies manufacturers of hand-operated power equipment, lawn mowers, and tractors. Products also include a range of stamped and deep-drawn parts, such as clutch drums and spiked bumpers. 

The parties have agreed not to disclose the purchase price. The transaction remains subject to approval by the relevant antitrust authorities.

The European Agricultural Machinery Industry Association (CEMA) has compiled its 2022 Industry Report, detailing the characteristics and key figures of the industry.

The report provides a complete overview of the agricultural machinery industry in Europe based on the latest figures available. The report includes highlights on current topics, with a focus on the effect of Russia's war against Ukraine on the agricultural equipment, parts and components flows in Europe, and on agricultural robots.

According to the report global agricultural equipment exports increased from €60 to almost €74 billion between 2020 and 2021, a rise of 23%. Germany remains the global leader, with agricultural machinery exports slightly higher than €13 billion. China got closer (€9 billion), moving in front of the United States (€8.1 billion), while Italy and France completing the top 5. When aggregated, the European Union well exceeds global agricultural equipment exports. 

According to CEMA estimates, the European agricultural machinery market (European Union + United Kingdom) was worth €34.2 billion for manufacturers in 2021, up 20% compared to 2020. France was the largest European market, at €7 billion. It was followed by Germany, Italy, the United Kingdom and Poland. In 2021, this top 5 accounted for 66% of the total.

To download the full report click here.

The Toro Company in the U.S has reported record results for their fourth-quarter and full-year fiscal for 2022.

Full-year net sales were $4.51 billion, which is up 14% year on year - whilst fourth-quarter net sales were $1.17 billion, which is up 22% year on year.

Richard M. Olson, chairman and chief executive officer said, "We delivered record top and bottom line results in the quarter and for fiscal 2022, with full-year net sales exceeding four billion dollars for the first time in company history.

"Demand for our innovative products remained strong throughout the year, especially in key professional markets. Our employees and channel partners collaborated to achieve outstanding results in what remained a very dynamic operating environment. Most importantly, we continued to advance our strategic priorities with a focus on driving value now and into the future for all stakeholders."

Richard continued, “In the fourth quarter, professional segment demand was broad-based. Our biggest constraint remained our ability to fulfil the heightened backlog of orders given the current supply chain environment. For the residential segment, retail demand continued to normalise, reflecting more typical seasonal trends and weather patterns. Notably, this demand normalisation is building off the higher base we have established over the past few years with our refreshed product line-up, expanded channel, and enhanced brand marketing.”

Looking ahead to this year, Richard said, "We have started fiscal 2023 with great momentum, supported by substantial order backlogs for products in key professional end markets and expected benefits from our pricing and productivity initiatives." 

He also said the company would be prioritising investment in "the key technology areas of alternative power, smart-connected, and autonomous solutions."

For further details on the company's results visit here.

The Claas Group recorded an increase in sales of 2.7% to a new high of €4.9 billion for the 2022 financial year, despite the difficult trading conditions.

The manufacturer said their EBITDA margin remained high at 8.8% but profits before taxes fell to €166.3 million mainly as a result of impairments in Eastern Europe. They also said the company continues to see strong demand for its products, especially in North America but sales in Europe, although down slightly, were still strong.

CEO Thomas Böck said, "The year 2022 has challenged us in every respect. In this difficult mix, we have shown how resilient our business model is. We delivered and proved with a lot of personal commitment that we can measure up to our vision of making customers the best in their field. We have delivered 100% on our harvest promise to our customers. For this, all employees and distribution partners deserve my thanks."

The 2022 financial year saw the company continue with its investment programme, with €130 million being invested in its global sales and production network, while R&D spend was increased by 6.4% to €279 million.

Full details are available here.

The American Society of Agricultural and Biological Engineers (ASABE) has named New Holland 2023 Guardian Front Boom Sprayer with PLM Intelligence and Pro-Belt Series Variable Chamber Round Balers winner of a 2023 AE50 award.

Guardian Front Boom Sprayer with PLM Intelligence

AE50 awards honour innovative designs in engineering products or systems for the food and agriculture industries. The AE50 awards program emphasises the role of new products and systems in bringing advanced technology to the marketplace. 

Companies from around the world submit entries to the annual AE50 competition and up to 50 of the best products are chosen by a panel of international engineering experts. The judges select products that will best advance engineering for the food and agriculture industries.

Pro-Belt Series Variable Chamber Round Baler

Carlo Lambro, brand president New Holland Agriculture said, “We are pleased and honoured to receive this prestigious award that is surely one of the most important in our sector. Our focus on innovation and technology is very strong and this recognition is an indication that we are on the right path.

"Congratulations and well done to all the international teams who worked on the two products rewarded.” 

Following last year's postponed event that took place in May, the LAMMA exhibition returns to the Birmingham NEC in its regular January slot on Tuesday 10th and January 11th this week.

As well as the comprehensive display of agricultural machinery, one of the new features of 2023's edition will be a schedule of seminars. Organisers say the ‘LAMMA Torques’ programme will bring farmers and growers up to date with changes to agricultural policy.

“LAMMA Torques symbolises the power of a force to provoke change in the dynamic farming industry,” said Nichola Bell, head of events at Agriconnect which organises LAMMA. “The team has secured an excellent line-up with experts and industry leaders to answer our visitors’ most pressing questions at this time of unprecedented change and uncertainty.”
 
One session that may interest Service Dealer Ireland readers has machinery efficiency as its theme. The opening session, it takes place at 9.30am on day one with Chris Sheldon of Brown & Co and representatives from Kubota sharing advice and top tips. Farmer and YouTuber Olly Harrison will also share his secrets to minimising machinery and fuel costs.

Further details on all the LAMMA Torques and free show registration is at: www.lammashow.com