I hope you had a pleasant St. Patrick's weekend. In the gardening world in Ireland, St. Patrick's day has always been the traditional time when it was safe to plant potatoes outside, without the risk of the tubers getting frost damage. This was also the time when other horticultural practices were carried out.

 
With the fine weather and a stretch in daylight hours, people are now beginning to get out into their gardens once again. One of the jobs they will be doing is getting out the lawnmower to give the grass its first cut of the year. Many will bring their mowers to their local dealer to get its annual service done, many, as usual, leaving it until the last minute. Some will discover that their mower doesn’t work anymore and will need replacing.

This is an important time of year for dealers as well. It’s just ahead of when farmers and growers will be sowing their crops. Having adequate supplies of those much needed spare parts to have on hand will be important - bearings, filters, belts, hydraulic hoses, universal joints and so on. Keeping an adequate stock of parts is not as easy as it sounds and remains one of the many challenges facing dealers in Ireland at the moment. Since the war in Ukraine dealers have had problems with ordering spare parts due to supply shortages. As we all know too well, the war also caused the price of energy and materials to soar, including metals. However, the situation is not as bad as it used to be, but there are still issues to be addressed.

It’s hard to understand why the cost of buying in machinery parts still remain high, despite the fact that many of the materials are now well below pre-war prices. For example, iron ore and steel prices are back to what they were in December 2020. Many will argue that transport costs still remain high and this is keeping the cost of machines and spare parts to where they are, even though, just like material costs, energy prices are also at pre-war levels. Natural gas, for example is at its lowest price since August 2020. Electricity bills have not come down in line with energy prices either. There is help available for businesses experiencing high energy costs.

Your business may qualify for the Temporary Business Energy Support Scheme (TBESS). The TBESS was introduced to support businesses with increases in their electricity or natural gas (energy) costs. Your business can make a claim under the scheme if it:

• is tax compliant
• carries on a Case I trade or Case II profession. This includes charities and approved sporting bodies that carry on certain activities
• has experienced a significant increase of 50% or more in its electricity and, or natural gas average unit price.

Qualifying businesses can claim for 40% of the increases in their energy bills. More information on TBESS can be found on www.revenue.ie 

Another challenge we face is the cost of borrowing. Last Thursday the European Central Bank increased its interest rates by another 0.5%. This puts pressure on many householders who are paying mortgages. It also puts pressure on businesses who have or are about to take out a loan to expand their business. 

Despite these challenges, demand for machinery is still strong. The Farm Tractor & Machinery Trade Association (FTMTA) recently reported 712 new tractor registrations for January and February. This is an increase of 11% compared to the same period last year. All we need is to be able to deliver them to our customers and on time.