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

Today I offer my 2020 vision of some of the challenges and changes that our industry may face this year.

 


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

NEWS
VANDALS WREAK HAVOC
On football pitches
 
A burnt out car on one of the pitches at Kilbogget Park. Photo courtesy Councillor Anna Grainger

Over the Christmas period, vandals caused major damage to several pitches in Kilbogget Park, Ballybrack, Co. Dublin.

 


Over the Christmas period, vandals caused major damage to several pitches in Kilbogget Park, Ballybrack, Co. Dublin. Gardaí received reports of a car being driven in circles around three of the pitches at around 4.30am on December 28.

 

A burnt out car on one of the pitches at Kilbogget Park. Photo courtesy Councillor Anna Grainger

 

Upon arrival, Gardaí discovered a burning car, abandoned in the middle of the piches. Shocking pictures showed the surfaces of the pitches completely dug up by tyre tracks, with a burnt out car left in the middle of the field. This act of vandalism has caused major disruption to the local community, where up to sixty teams in the area use the pitches, particularly Cabinteely FC, a League of Ireland First Division club. Two of their pitches could be out of action for "weeks or months", the club said in a statement. "How do we tell our players, some as young as five, coaches, managers, families and volunteers that we won’t be able to train or play on these pitches for weeks, maybe months."

“We are seeking meetings with Dún Laoghaire-Rathdown County Council and An Garda Siochana for an urgent restoration of the pitches and plans to prevent a recurrence of this nature” they added.

 

Damage to the football pitches was very extensive. Photo courtesy Councillor Anna Grainger

 

Dun Laoghaire Rathdown Councillor Anna Grainger took to Facebook to share her shock.

 

"Players, coaches, families and clubs are all too aware of the difficulties already presented during the winter months with adverse weather conditions affecting the playability of pitches all across the country, without having to deal with this outright vandalism of local facilities.

 

"Communities lose out big time and that's not taking into account of the financial cost to repairing these pitches.

 

 

"This trend of vandalism of pitches is not an isolated incident and would appear to be increasing. From sports pitches in Kilkenny and Limerick to Dundrum, Tallaght targeted 18 times and now Cabinteely in Dublin to name but a few.

 

"Something must be done to tackle the deliberate destruction of community facilities and bring the perpetrators to justice."

JOHN DEERE TO CULL A SIGNIFCANT CHUNK OF ITS DEALER GROUPS?
Reports circulating
 
John Deere

It has been widely reported during recent weeks that John Deere has informed its European agricultural equipment dealers that it plans to reduce the number of dealership groups by between one fifth and one third.

 


It has been widely reported during recent weeks that John Deere has informed its European agricultural equipment dealers that it plans to reduce the number of dealership groups by between one fifth and one third (i.e. a 20-33% reduction).

 

A report from publisher Ag Equipment Intelligence says that John Deere “expects [remaining dealer groups] to double their current tractor area, meet a €100 million turnover target and sell 30 combines and 15 foragers every year”.

 

This tallies with details from a statement issued by well-known UK-based dealer – Sharmans Agricultural Ltd. It issued the statement (online) earlier this month, notifying its customers that the business would “not continue to be a John Deere dealer” – effective from October 31, 2020.

 

Sharmans Agricultural Ltd says that it first learned of John Deere’s latest global ‘Growth Strategy’ at a dealer meeting at Agritechnica, which took place last month (November) in Germany.

 

The statement claims that, at that meeting, “all 350 European dealer groups were informed that – in future – there would be a reduction of approximately a third to a fifth of current dealer groups”.

It also lists the following future expectations – apparently stipulated by John Deere – for dealer groups:

  • Double current tractor area (varies by dealer);
  • €100 million turnover;
  • 30 combines; 15 foragers; to be sold each year.

Even here in Ireland, there is already a move (albeit on a somewhat different scale) toward larger and fewer dealers, with the remaining (enlarged) dealer operations each having multiple outlets.

A prime example of this is John Deere dealer group TFM (Templetuohy Farm Machinery), which now covers a vast swath of the country (stretching from Wexford to Galway) through multiple depots.

 

Source: Agriland.ie

TORO EXCEED $3BILLION MILESTONE IN 2019
Record sales recorded last year
 
Toro acquired the maker of the Ditch Witch products last year

Company says acquisition of Charles Machine Works and strong demand for snow and ice management products in their professional and residential segments contributed to success.

 


The Toro Company has reported results for its fourth quarter and full fiscal year ended October 31, 2019.

 

The company announced that full-year net sales increased 19.8% over the prior fiscal year to a record $3.1 billion.

 

The company attributed this success to the acquisition of Charles Machine Works and strong demand for their snow and ice management products.

 

Toro acquired the maker of the Ditch Witch products last year

 

Richard M. Olson, Toro’s chairman and chief executive officer, said, "We concluded fiscal 2019 by exceeding the $3 billion revenue milestone and delivering strong gross margin and revenue growth momentum heading into fiscal 2020.

 

"The year was marked by record results, the transformational acquisition of Charles Machine Works and strong demand for snow and ice management products in our professional and residential segments. New product introductions contributed to our growth, such as the stand-on BOSS Snowrator, the redesigned Power Clear snow thrower and the Flex-Force lithium-ion battery-powered products with all season capability.

 

"I would like to thank our team and channel partners for their dedication, consistent execution, and continued focus on our end customers.”

 

Fiscal Year 2019 Financial Highlights

  • Net sales of $3,138.1 million, up 19.8% compared to fiscal 2018 net sales of $2,618.7 million
  • Net earnings of $274.0 million, up 0.8% compared to fiscal 2018 net earnings of $271.9 million; *Adjusted net earnings of $324.3 million, up 11.8% compared to fiscal 2018 adjusted net earnings of $290.1 million

Fourth Quarter Fiscal 2019 Financial Highlights

  • Net sales of $734.4 million, up 36.2% compared to fiscal 2018 net sales of $539.3 million
  • Net earnings of $38.3 million, down 2.0% compared to fiscal 2018 net earnings of $39.0 million; *Adjusted net earnings of $51.8 million, up 51.5% compared to fiscal 2018 adjusted net earnings of $34.2 million

Looking ahead to 2020 Richard M Olson said, “With the first quarter of fiscal 2020 underway, we are encouraged by the retail activity in our professional and residential snow and ice management products. The fundamentals of the business remain strong and we expect to generate higher levels of free cash flow and return value to our shareholders through dividends and share repurchases."

MAJOR PRESENTS NEW RETRO FIT SLURRY SPREADERS
At LAMMA this week
 
Major's Trailing Shoe applicator

Major Equipment, based in Ballyhaunis, Co. Mayo, have new low emission Dribble Bar and Trailing Shoe applicators.

 


Major Equipment, based in Ballyhaunis, Co. Mayo, have new low emission Dribble Bar and Trailing Shoe applicators. They offer a solution to the growing challenges of tighter regulations while maximising the benefit of slurry.

 

Trailing Shoe applicator

 

The MAJOR applicators are designed to apply slurry to the soil surface as accurately as possible while minimising nutrient loss and ammonia emissions. Both are available in 7.5m working widths and have 30 outlets spaced 260mm apart for even and precise distribution of liquid material in long and short grass.

 

Low emission and precision slurry spreading
“Slurry is an asset and to extract the most value out of it, it needs to be applied as close to the soil as possible,” says Eoin Murphy, Major Equipment’s UK General Manager. “Besides reducing the amount of nutrients lost when compared to surface spreading, you minimise sward contamination and uneven growth. These are increasingly important considerations for farmers who depend on healthy grass for livestock.”

 

Simple and affordable solutions to stay compliant
The new systems are simple and cost-effective solutions to comply with upcoming government requirements to spread slurry and digestate using only low-emission spreading equipment.

 

The MAJOR slurry injectors are easily mounted onto the back door of a vacuum tank without welding or fabricating, making them ideal for retro-fitting. Brackets with settings in 60mm increments allow either unit to be set according to the tanker height making the system completely adaptable to any tanker make or model. They can also be used with the existing splash plate left in place.

 

“The bewildering number of systems out there can be overwhelming for farm business owners who just needs a solution to stay compliant,” says Eoin. “We’ve been customising tankers for over 40 years so we’ve thought through everything with our retrofit low-emission slurry spreaders. With best in class components and materials, our systems are built to last, thereby delivering real value for money.”

 

Double duty agricultural mower
MAJOR will also display a selection of its power-saving Cyclone mower. The heavy duty shredders do the work of conventional mulchers and flails with a minimum 25% less power required than equivalent-sized machines. For example, a 110-hp tractor with a PTO at 1000/rpm is enough to power the 5.6m (19’) shredder.

 

From traditional pasture topping to brush control, these machines are especially effective on crop stubble including cotton, maize, rapeseed, and sorghum. They are equally at home in set-aside, forestry margin management, and environmental scrubland control.

TWO NEW FROM BLEC
To be launched at BTME
 
The Blec Multivator

The Multivator returns to the renovation stable by popular demand, while a new pedestrian version of the Rotorake will also be introduced

 


BLEC will be returning to BTME in Harrogate this month with details of two new machines being launched into the landscaping and turfcare range, in early 2020.

 

With a Redexim touch, the Multivator returns to the renovation stable by popular demand, while a new pedestrian version of the Rotorake will also be introduced. Visitors can find out all the details from the BLEC team on stand 414 in the Purple Zone.

 

The Blec Multivator

 

The Multivator returns good quality material from depths of up to 30cm back into the upper layers of the soil profile. Once the soil has been successfully exchanged, the rear-mounted brush then ensures material is distributed evenly to leave a clean finish in its wake. A popular machine from the BLEC portfolio in days gone by, the Multivator returns with a working width of 180cm and a 75hp tractor requirement. With a number of new features under the guidance of Redexim design and engineering, the Multivator will become a popular tool for contractors, local authorities and large-scale landscapers once again.

 

Also built in direct response to customer demand is the new Rotorake 1000. This new compact, pedestrian variant of the larger, tractor-mounted model is designed specifically for use in smaller areas and those with restricted access. Powered by a BCS two-wheel tractor or similar, the Rotorake 1000 features a 100cm working width and uses a multi-tine rotor to rake down to a maximum depth of 30mm. PTO driven, its principle is the same as that of the heavy-duty Rotorake – to move and wind-row unwanted stones and debris using a contra rotating rotor to leave a clean, level finish.

 

Along with finding out about the latest additions to the line-up, stopping by the BLEC stand will also give visitors the chance to see some of the most popular products from their pedestrian range - the Cultipack Seeder and Power Box Rake.

CHARTERHOUSE TO LAUNCH NEW SOLUTIONS
For aeration & brushing
 
The Redexim Top-Brush has a working width of 6m

A brand-new addition to the Redexim Verti-Drain range will feature on the Charterhouse Turf Machinery stand at BTME 2020.

 


A brand-new addition to the Redexim Verti-Drain range will feature on the Charterhouse Turf Machinery stand at BTME 2020.

 

Expanding the existing offering with a new 1.9m working width, it is suitable for use on a variety of turf surfaces. Visitors to stand 432 in the Purple Zone will also be able to find out about the new 6m wide Top-Brush for course presentation, removal of organic matter and dispersal of worm casts.

 

The Verti-Drain 2519 combines its 1.9m working width with a variable working depth of up to 250mm (10”) and can accept a range of tine options including 12mm and 19mm solid tines, as well as hollow tines for coring. This versatility makes it a popular choice with greenkeepers, groundsmen and contractors alike looking for a machine suitable for year-round operation. As standard, the 2519 features user-friendly controls, an easy to adjust heave lever and a new draw rod system. Together with new features, it also comes with new styling and livery.

 

The Redexim Top-Brush has a working width of 6m

 

As well as updates to the aeration portfolio, Charterhouse will also be launching a new tool into their brush range. As an ever-increasing number of chemicals continue to be withdrawn from the market, Course Managers are turning to mechanical forms of maintenance to keep surfaces balanced and reduce contributing factors to disease. Brushing stands the grass plant upright, helping to achieve a cleaner quality of cut and can rid the surface of excess moisture and dew to maintain good airflow through the turf canopy.

 

The Redexim Top-Brush’s 6m working width makes it ideal for large areas such as golf fairways and sports pitches. It is comprised of 3 poly brushes, that can be accurately set to the desired depth to achieve a light surface brush-in or more aggressively loosen surface material. The ‘wings’ can then be hydraulically lifted and folded for convenient transportation and storage.

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