WILL LIFE EVER BE THE SAME AGAIN?
How will SME's fare?
by Service Dealer Ireland Editor, Alan Mahon
 
Alan Mahon

We are very close to a new government being formed. It has been over four months since the General Election, which resulted in a complicated result to say the least. It will be interesting to see how the Small and Medium-sized Enterprises (SME’s) will be looked after, especially those businesses that came into hard times during the Covid-19 lockdown, which included many service dealers and distributors around the country.

 

Signs are looking good for the country to get back on its feet again as many of the restriction easings have been fast-tracked. GAA sportspitches will re-open for training this Wednesday, five days ahead of schedule. The five easing Phases have been reduced to four with Phase 4 to begin on July the 20th. This is mostly due to the co-operation of the public with fewer cases and deaths being reported. Thankfully, the peak of the virus is past us but there are concerns of fresh outbreaks occuring in Bejing. We must not drop our guard just yet.

 

It is hard to see how long the 2 meter distancing rule will apply for. There are suggestions from some businesses, such as small restaurants and pubs, that the distance should be reduced to 1 meter. Will the 2 meter distancing become the new normal and how will it impact dealership premises and workshops?

 

It is encouraging to see tractor and machinery factories reopening around Europe which, hopefully, will see dealers receiving machines and spare parts for delivery to their customers. However, as last April’s figures show, demand for tractors in Ireland has dropped since the lockdown. I was talking to one dairy farmer recently and he told me that the price he receives for milk has dropped, due to Covid-19. The reason, he said, was that there is less demand for dairy products, mainly because of hotels, restaurants and cafes remaining closed. These establishments are due to re-open next Monday (29th of June), with distancing restrictions in place. Some are of the opinion that tractor sales will probably pick up and will end up being the same as last year. Their reason is that even though demand dropped during the lockdown, the orders were still there, it was just that the factories producing the tractors were closed. These factories are now back in full production and are dealing with the back orders from last March and April.

 

It has been a different story, though, with domestic lawnmower sales. One dealer told me that, because they were closed during the lockdown, their lawnmower sales dropped dramatically, even though more people were out working in their garden. The fact that customers could not walk into a dealer’s premises to purchase mowers, especially second hand mowers, contributed to the downturn in sales. It was the online shopping that helped some dealers weather the pandemic.

 

There is one interesting element regarding the easing restrictions of Covid-19. Even though businesses have already re-opened, it is not what you would call “business as usual”. The cancellation of the agricultural shows around the country, the biggest being the National Ploughing Championships, has had a mixed reaction within our industry. These are places where tractor and lawnmower trade stands would be seen. Some dealers are of the view that the cancellation of these shows will make no impact on annual sales. One company representative even went as far as to say that it was a great relief for them that the shows were cancelled as it cost them more money on renting a stand than what they would get from the sales that were made there. Others say that the shows were great PR events, a place to meet existing customers and make new ones.

 

Whatever rules will be put in place after Covid-19 I don’t think life will be the same again. Don’t forget, Brexit is ready to greet us when the pandemic is finished.

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