I hope you had a most enjoyable St. Patrick’s Day weekend. The weather held up well and it was great to see so all the wonderful floats in the parades around the country. It was also nice to see some dealers entering and showing off their dressed up tractors in the parades. We need that bit of cheer to take us away from the realities of business life. 

I would like to touch on the topic of diversification and correlation in business. This might sound boring for some, but when you delve into it a bit more it can be a fascinating topic. 

When investing in financial investment funds, brokers or fund managers will ask their clients what level of risk they want to take. The risk level is based on a scale of 1 to 7, with 7 being the highest risk. For investors that want to opt for the middle to low risk category range, they will be given safer options. To spread the investment risk, fund managers will create a portfolio that has different types of funds in it, usually around four or five, depending on the amount invested. This is known as diversification.

Diversification avoids putting all your eggs in one basket. This is seen in our own industry where dealers are not depending on just one type of product to make a profit. At the moment there is a fall in demand for large powered tractors. This is mainly due to the extra costs and legislation that is being forced on farmers. With that in mind it is important for those dealers that sell the high end range of tractors to have other sales options. Selling smaller or compact tractors to the sportsturf or landscape industry might be an alternative option perhaps? Keeping an eye on market trends is important. So too is being able to adjust to these trend changes.

Another term that is often used in investment language is ‘correlation’. This describes the relationship that different markets have with each other. There are positive and negative correlations. Positive correlation is when one fund increases in value another fund will also increase. Negative correlation is when one investment fund falls in value, another fund will increase its value, which can, in some situations, also minimise the risk level.

Dealers can apply this principal of correlation to their business. Many do this without realising it. For example, with the changing of the seasons, sales of leaf blowers will fall from Spring onwards, while lawnmower and hedgecutter sales will increase during this time (negative correlation).

Understanding the correlation between different factors in your business can benefit your marketing campaigns. For example, if the more you spend on advertising and promotion results in stronger sales then that is a positive correlation. An example of a negative correlation would be if you increase the number of customer service employees, the number of complaints will decrease, which may, over the long term, save you money.

Correlation in business can be quite complicated and it would take a lot more writing in this blog to explain it fully. It involves using formulas, which are on Excel spreadsheets, and collecting lots of data such as customer habits and marketing trends. Knowing how to analyse and use this information for correlation would involve some time but the more information and data you can collect the more it will help you make better business decisions. 

Correlation in business is worth looking into. There are many articles that can be found online to help with your understanding of this topic. In the meantime, spread your eggs among many baskets.

Irish Farm & Garden Machinery (IFGM) is celebrating 50 years of business this year.

L-R: Paul Butterly, Eileen Butterly and Kieran Butterly

The independent distributors of outdoor power equipment, remains family owned and run, now managed by second generation Paul Butterly (managing director), and brother Kieran (technical director). Although retired, Mum (and co-founder) Eileen, continues to pop into the Dublin office around three days a week - just to ensure that the business continues to operate smoothly.

“We’re thrilled to have reached this milestone,” said Paul. “This is a tough industry and the fact that we’re here in 2024, bigger and stronger than ever, is simply amazing”.

Paul continued, “We’ve always focused on keeping the company very nimble and this gives us a lot of flexibility to adapt to changing market conditions. We’ve been careful in the rate of our expansion, gradually building the business over time, only working with the very best brands in the industry. No matter what is happening in the economy, people will always buy quality product that offers the best value-for-money.”

In 2006, the business purchased U.K distributor Claymore Grass Machinery, now known as FGM Claymore, an acquisition that greatly extended the reach of the company. In 2022, the business was awarded U.K distribution rights for Echo which, following the appointment in Ireland a few years earlier, made IFGM the third largest Echo distributor in Europe.

The team at IFGM celebrated the anniversary during a special event held on the 28 February in Athlone. Dealers from all over the country, alongside special guests from Briggs & Stratton and Yamabiko, joined the Butterly family to celebrate the anniversary. 

Paul gave a special presentation that covered the history of the company, sharing anecdotes alongside the major milestones that made up the IFGM story. There were congratulatory video messages from garden machinery suppliers in New Zealand, Japan, and Italy, alongside special in-person presentations from Briggs & Stratton and Yamabiko.

Milwaukee Tool has announced its intention to increase its market share in the outdoor power equipment (OPE) sector in 2024, saying they will offer more battery-powered solutions for gardening, landscaping and horticulture professionals.

 
The company has said they are set to heighten their position in the market with both new and updated releases of its cordless products.
 
Rhys Adams, national sales manager OPE at Milwaukee Tool UK, said, “Our mission in 2024 is to ensure our expansive range for cordless equipment proves its value to professionals in the OPE sector by providing a one-stop-shop for the solutions they need.
 
“To help increase our share of the OPE market, we’re bringing a variety of new products, as well as enhancements to our existing product ranges, to help ensure users have the right solutions to complete the task at hand with ease and efficiency when compared to more traditional alternatives - something that has always been at the top of our agenda.”
 
Rhys continued, “Our battery platform has been tried and tested in some of the world’s harshest and most demanding environments to ensure that no matter how challenging the job might be, or how difficult the terrain, our solutions are up to the task. The same technology, battery platform and power is put into our OPE range to support more and more professionals in the sector, and we’re excited to be able to provide the industry with even more solutions which we’ll be announcing very soon and throughout the remainder of the year.”
 
The company say amongst the tools to be released this year are the 46cm steel deck, dual battery self-propelled lawnmower and their first dual batery backpack blower - both of which utilise the company's M18 Fuel battery technology.

Husqvarna Group have announced that they have signed an agreement with Rivulis Irrigation to acquire ETwater, a smart irrigation management solution for the commercial market in North America.

As part of Orbit within the Gardena Division, Husqvarna say ETwater will become the nucleus for a newly formed unit, dedicated to "providing solutions for enterprise customers".

ETwater is servicing customers in the U.S ranging from municipalities, commercial facilities, and campuses to large residential communities with water management solutions. A spokesperson said, "Both Orbit’s and ETwater’s systems integrate data science and predictive analytics about weather and other environmental variables to automatically create and program site-optimised irrigation schedules."
 
Pär Åström, President Gardena Division added, “Husqvarna Group has a leading position in residential watering in North America, and adding ETwater’s strong team and proven technology combined with our B-Hyve capability gives us the opportunity to expand our commercial offering in the North American market."
 
The formal transaction is expected to close this month (March 2024).

Organisers of the Equip Exhibition that takes place in Louisville, Kentucky from October 15-18, say that outdoor power equipment dealers can develop their skills and take advantage of new trends impacting their industry due to expanded educational opportunities this year.

Exploring new business opportunities is a main focus of the show, which drew more than 27,000 participants from 46 countries last year.

“Equip Expo’s mission is to help landscape, contractors and equipment dealers, advance their businesses,” said Kris Kiser, President and CEO of the Outdoor Power Equipment Institute, which owns Equip Exposition. “Come to Louisville to see the latest and most innovative equipment and leave with a new perspective and greater knowledge that you can immediately apply.”

Equip says the Dealer Management track will help outdoor power equipment personnel think through whether it’s smart to open a new location, how to exceed sales goals, keeping departments working together smoothly, and delivering great customer experiences.

The dealer education will be provided by the Equipment and Engine Training Council and Bob Clements International.

Registration for the show is open now and you can find out more about the education programme here.

Organisers of the Cereals Event 2024 have announced they will welcome visitors to a new site at Bygrave Woods, Newnham Farm in Hertfordshire, UK on 11-12 June, alongside its brand-new co-hosted event DirectDriller@Cereals.

Hosted by Alex Farr and his cousin Edward Wainright Lee, both events will be held on the Farr family’s 45-ha outdoor event space - one of the 900-ha arable farm’s diversifications, complete with established trackways and amenities. Cereals say its 10 years as a large event venue means it is well-placed to host the 20,000+ visitors the events are set to attract.

“We love welcoming people to Bygrave Woods - it’s great to be the host farm for Cereals after attending it over the years,” said Alex Farr. “The event offers such breadth of information and technology; the progress in robotic technology is always something that gets our attention - and it never gets old meeting new and old friends.”

As ever, Cereals will showcase the latest developments in arable agronomy, machinery, technology and business advice; with over 450 exhibitors, 200+ live demonstrations, two days of seminar programmes, and several hundred individual crop plots on display.

New to 2024 is the co-located event - DirectDriller@Cereals. Co-hosted by Cereals and Direct Driller Magazine, its theme is ‘Regenerating farm profit’, and it will focus on how regenerative agriculture can make large-scale arable farms more commercially successful. It will comprise a full conference programme including seminars curated by BASE UK, and a schedule of demonstrations - which organisers say are soon to be announced.

A former serviceman who started a new career as a technician working on machinery for groundscare professionals says the sector offers huge opportunities for those looking to resettle after life in the armed forces. 

Andy Irvine

Andy Irvine is one of a number of individuals who have started new jobs at John Deere dealerships across Ireland and the UK following many years in service. 

Based at Turner Groundscare Machinery near Chester, UK since last April, Andy stepped into a field service technician role, supporting customers at world-renowned football clubs, golf courses and rugby stadiums across north-west England. 

He has recently been promoted to workshop manager and says there is job satisfaction and progression on offer for anyone leaving the forces with the appropriate skills. 

Andy served 14 years in the Royal Electrical and Mechanical Engineers (REME), running workshops of up to 25 people on home soil and during overseas deployments. 

He worked on a wide variety of machines ranging from chainsaws to quad bikes and diggers to main battle tanks. 

“I’ve always been interested in engineering,” Andy said. “When I left school, I worked in a local garage I got a really good grounding of engineering standards.

“My foreman at the time said something to me that I’ve taken with me throughout my career; anything you touch has to be at a certain standard when it goes out the door, and if it’s not, then it’s your reputation that’s on the line.”

Andy was keen to get started in a new career so he interviewed for a position at his local Turner Grondscare Machinery dealership. He was still contracted to the army for six months, but general manager Gareth Baker agreed to hold the post for him. 

As a technician, Andy works on a wide variety of machines. Being on the road daily means he could be working at Liverpool FC’s AXA Training Centre in the morning and supporting the team at Royal Birkdale Golf Club in the afternoon.

Andy notes similarities in working as a technician and being in the army. He says every day is different, and when he was called to a job he never knew exactly what to expect.

“When you get the call, you only know you’re going out to a repair, where the location is and what the machine is, but everything else has to be dealt with when you arrive,” Andy said.

“The pressure is on you. Whether it’s soldiers or greenkeepers, people look to you to relay your intelligence and your thought process into what the fault could be and explain to them why a part has failed and how the issue is resolved.”

Andy now hopes to encourage those thinking of leaving the service to make the change and start a new career with John Deere.

“If you have the right mindset and you’re positive and proactive, you’ll be completely fine transitioning from military life to civilian life,” Andy said. It’s a step forwards towards not just a better job, but a better lifestyle."

Gareth Baker of Turners added, “Andy’s been a breath of fresh air. His work rate and organisational skills are exceptional, which is exactly what you need for a role like this. 

“We were prepared to wait for him to complete his transition from the army for six months, primarily because of his management experience. 

“He’s now the workshop manager and has built a team underneath him, including a technician who has recently joined our team from the Navy. 

“The calibre of people that have come into the sector from the armed forces really stands out.” 

John Deere launched its Military Hiring Programme in 2023 in a bid to attract people such as Andy to the agriculture and professional groundscare sectors. He thinks it will be a great springboard for those wanting to resettle into the sector.