2020 VISION
What will 2020 bring that will affect dealers and distributors in Ireland?
by Service Dealer Ireland Editor, Alan Mahon
 
Alan Mahon

First of all I would like to wish all our readers a very happy New Year and that all your businesses will thrive and prosper in 2020.

 

Now that we are in a new year (and decade) what will 2020 bring that will affect dealers and distributors in Ireland? Here is my 2020 vision of some of the challenges and changes that we may face.

One issue will be Brexit (can we ever get away from it). The results of the recent UK elections, with Boris Johnson getting a clear majority, may bring some stability to the Brexit issue. It is now likely that the Withdrawal Agreement will get passed in parliament at the end of this month, leaving the path clear for the difficult trade negotiations that lie ahead. This is where the uncertainty remains. What taxes and checks will be put on imports and exports of goods, particularly tractors, mowers and equipment? How will it all be managed? I think these negotiations will work in favour for the service dealer sector as the food and agricultural industry in Ireland will be given priority in the negotiations. It is this sector that dealers and distributors sell into the most. However what about the dealers that supply to the sportsturf and amenity sector? Will the new rules and regulations pass down to all agricultural and horticultural equipment?

 

Another issue that will affect us in 2020 is the trade war between the US and China. This has slowed world economic growth for the past two years. It could change favourably in 2020 as Donald Trump is keen to get re elected. He will be keen to resolve this stand off with China and see economic growth improve, particularly in the US. With a better economy people will have more money to spend which should favour our industry. Indirectly, a good trade relationship, free of or reduced tariffs, between the US and China could mean cheaper American machines and equipment that use Chinese technology for their electronic components. The downside with the Trump administration is that he could target Europe with more tariffs. He has already done this last year putting a 25% tariff on goods such as some tools and equipment from Germany, certain pork products, butter, liqueurs and yogurt from multiple countries (including Ireland). What will he target next?

 

However, I think the biggest topic for 2020 will be climate change and how to reduce carbon emissions. This will be the biggest development in our sector as more and more battery powered equipment will be introduced into the market. It has already happened in the sportsturf sector with the introduction of electric fairway and greens mowers along with strimmers and pedestrian mowers. Dealers will need to get familiar with how to maintain and service battery operated equipment. There will be fewer petrol and diesel engines to be serviced so technicians will need to adjust to the changes. However, the development of electric technology for large farm tractors is still a long way off. There are some models already in the market but to provide the energy in a single charge for a tractor to do heavy duty work will take a bit longer to develop, but it will happen.

 

Lots of uncertainty lie ahead but if we knew what exactly will happen, life would be pretty boring.

 

Happy New Year

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2020 VISION
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