EDITOR'S BLOG
BEG, BUY OR BORROW?
Historically low rates currently
by Service Dealer Ireland Editor, Alan Mahon
 
Alan Mahon

What do all these low interest rates mean for Irish machinery dealers and buyers?


We are in a very strange place right now, economically speaking. Interest rates are at an all time low and are expected to get even lower. Both the American Federal Reserve and the European Central Bank (ECB) are trying to stimulate their economies so as to try and avoid a recession and generate economic growth, which is slowing down worldwide.


At the end of this month (July 30 – 31) the chairman of the US Fed., Jerome Powell, is expected to announce a 0.25% cut in interest rates, - the first time in eight years, - bringing US interest rates to 2%. More interest rate cuts by the US Fed. are anticipated before the end of the year.


In order to keep up with America, the ECB is also feeling dovish (wanting lower interest rates) and an interest rate cut is also very likely. The bizarre thing, from a European perspective, is that interest rates are already in minus territory (currently at -0.3%).


It’s hard to imagine a situation where you apply for a loan of say €100,000 and the interest rate given is -0.3%. That means the lending institution pays you €300 per annum for the privilege of giving you the money. How bizarre is that? An unlikely situation as the above mentioned interest rates only apply to banks and governments looking to borrow money to and from each other.


So what do all these low interest rates mean for Irish machinery dealers and buyers? Well it depends on our banks. The bad news is that these historically low rates do not apply to retail borrowers and are not the rates given by the high street banks. As some of you already know, that have taken out loans before, the interest rates that are being charged by the banks are many times above the ECB rates.


There are a few options open to the buyer - buy the equipment, or take out a loan or lease. Taking out a loan would be more attractive if the banks or financial institutions would pass on these lower interest rates to the customer. This would help stimulate the economy by getting people to buy more. Lower interest rates could pave the way for dealers and distributers to offer their customers financial package incentives to purchase large machinery fleets at little or no extra cost. Some of the bigger companies are already doing this and even offer 0% finance packages which are subject to their terms and conditions. An arrangement could even be made that after, say five years, the fleet would be replaced with brand new equipment for a small extra cost.


Given that the Inflation rate in Ireland is currently around 1.1%, according to figures recently released, the 0% offer could be very attractive indeed. However not all companies are offering finance packages.


Since the financial crash of 2008 banks have become very wary of lending out large amounts of money to their customers unless there is security given to offset the loan, and rightly so. However, with lower interest rates, the ability for businesses to repay the loan should become much easier.


I hope the banks will be more understanding and accommodating in this lower interest rate environment. After all, in order to survive, dealers need to sell more machines.

NEWS
ABREY APPOINT JENKINSON
For Ziegler cultivation equipment
 
Welcome to the team: Frank Jenkinson (left) and Toby Abrey shake on the deal

Jenkinsons, established in 1975 and based at Bagenalstown, County Carlow is already enjoying significant success with Ziegler Harvesting’s range of header trailers.

 


Abrey Agricultural Ltd is appointing Frank Jenkinson Limited as its distributor for the Ziegler brand of cultivation equipment for Ireland.

 

Welcome to the team: Frank Jenkinson (left) and Toby Abrey shake on the deal

 

Jenkinsons, established in 1975, is based at Bagenalstown, County Carlow, and works with a range of brands, especially New Holland combines and Bateman sprayers. It also has a thriving second-hand machinery business.

 

It is already enjoying significant success with Ziegler Harvesting’s range of header trailers, and proprietor Frank Jenkinson believes the company’s cultivation range will prove equally popular:

 

“We have an excellent working relationship with Ziegler as a manufacturer and Abrey as distributor. The products they make are top quality, as well as being very well designed and built.

 

“One other important aspect is that that their staff are prepared to listen to us and consider making alterations if we have a customer who needs that”, says Frank.

With the majority of Irish arable farmers now using non-inversion cultivation techniques, he expects there to be significant interest in the company’s DiscMasterPRO disc cultivator, and in the FieldProfi tined machine.

 

Toby Abrey believes the company can make significant progress in the Irish market: “Ziegler products have already gained an important foothold in the country and are valued by those who use them.

“By teaming up with an established dealer with an excellent reputation like Jenkinsons – with whom we have had an excellent relationship for over a decade already - we believe we are well placed to make progress in the future”.

SEAMUS WELDON CELEBRATE 25 YEARS
As a John Deere dealer
 
The Seamus Weldon team

Killarney based Seamus Weldon had plenty to celebrate recently as his company Gort na Vogue celebrated a 25 year association with John Deere.

 


Killarney based Seamus Weldon had plenty to celebrate recently as his company Gort na Vogue celebrated a 25 year association with John Deere.

 

From left: R Melanie Gardiner (John Deere), Chris Meacock (John Deere), Micheal Weldon, Seamus Weldon, Johnathan Henry (John Deere), Kathleen Weldon-Culloty, Martina O’Regan, Ben Courtney, Ben Courtney, Willie Walsh, Steve Knight, Padraig Weldon, Marcus Morris (John Deere), Tom Kelly, Bob Holt (John Deere). Missing from photo James Weldon, Aaron Knight, Ian Spillane.

 

On the 3rd of July, Seamus was presented with an award to mark his 25 years as a John Deere agent and some of the main Territorial John Deere Managers made the trip to Killarney to present this to Seamus in person. Seamus was delighted with the award and was pleasantly surprised to see Chris Meacock, John Deere’s Turf Division Sales Manager for the UK and Ireland make an appearance.


But life goes on for the busy firm as the following day Seamus Weldon were offering John Deere tournament support at the Dubai Duty Free Irish Open Golf Tournament which was held at Lahinch Golf Club.


“We are very proud to see a full fleet of John Deere turf machinery that we have supplied and would like to thank Lahinch Golf Club for their continued custom” said Seamus.


“Our technicians are highly trained across abroad spectrum of machinery and we can cater for everything from an issue with a domestic brush cutter to golf turf equipment and diesel commercial machinery” concluded Seamus.

CAMPEY TURFCARE ANNOUNCE NEW DIRECTORS
Julia Campey becomes md
 
L-R: Lee Morgado, Richard Campey, John Campey and Julia Campey

Former md, Richard Campey, has taken the position of chairman following a restructuring at the company.

 


Julia Campey has been appointed as the new managing director of Campey Turf Care Systems, with former md, Richard Campey, taking the position of chairman.

As part of the company restructure, John Campey and Lee Morgado have been appointed directors and Neil Armstrong, who joined Campey in 2010 as accounts manager will take up the position as company secretary.

 

L-R: Lee Morgado, Richard Campey, John Campey and Julia Campey

Julia has been a key figure at Campey since 2004 and has been the sales and marketing coordinator for the last ten years. The company says in this role, she has developed the corporate presence of the company throughout the UK, Europe and other parts of the globe, including the USA, Australia and Asia. She has organised exhibitions as well as educational tours for overseas visitors and provided invaluable support to the sales team in product development, sales and back-up services.

Richard is stepping aside from his previous role and handing over the day to day activities to his daughter, but he remains an integral part of the company, and he will still be involved in many sales and educational events.

Speaking about Julia’s appointment, Richard said, “I’ve had a lot of successful years at this company, and I’m very proud of what we have achieved. Julia has been a part of that success for many years and has extensive knowledge of our product range and the industry, and I’m very confident in her ability to take Campey forward."

He continued, “Lee has worked his way up through the company over 13-years and has a great understanding of how we operate and has a brilliant relationship with our customers and dealer, not just here in the UK, but throughout the world. Lee and John have been great assets to us, and I think both will use their practical experience to great effect in the boardroom.”

Lee, who started with Campey in 2006 in the workshops, has seen his role in the company grow and change direction over the years. He started life in the workshop and progressed to be a sales demonstrator before taking on numerous renovations across Europe and further afield before becoming product specialist for southern Europe and has also seen his sales area expanded to cover Denmark.

Along with John, Lee has a vast amount of experience from the field and the company says they will work actively in the new structure to maintain the founding principles of the company, ensuring that Campey continues to innovate, educate and provide excellent customer service.

NEW FACE JOINS POTTINGER'S IRELAND TEAM
Raymond McCaffrey appointed
 
L-R: Pottinger Ireland’s general manager Diarmuid Claridge with Raymond McCaffrey

Pottinger Ireland has appointed Raymond McCaffrey to manage its After Sales & Sales Promotion activities for the island of Ireland.

 


Pottinger Ireland has appointed Raymond McCaffrey to manage its After Sales & Sales Promotion activities for the island of Ireland.

 

L-R: Pottinger Ireland’s general manager Diarmuid Claridge with Raymond McCaffrey

 

Hailing from Co. Leitrim and having begun his career as an agricultural mechanic with a local dealer, Raymond then went on to work with McHale (based in Co. Mayo). He spent his most recent years travelling around the globe in a product/customer support role.

 

Pottinger Ireland’s general manager, Diarmuid Claridge commented: “We’re heavily focused on providing the best solutions for today’s farmers – grassland and tillage – and contractors.

 

“With Raymond’s appointment, we can now offer an extensive and professional after-sales advice and support service – to our growing dealer network and customer base.

 

“Raymond’s extensive knowledge, expertise and talent will be vital in the continued growth and development of our future business, through our committed dealer network.”

 

In related news, Pottinger – in conjunction with midlands dealer Atkins (Birr branch) – recently hosted a special working demonstration of its latest equipment.

 

Among other comments, Diarmuid noted: “Over the years, we’ve seen many people convert from trailed harvesters to wagons and, currently, from self-propelled harvesters. They’re seeing massive advantages – cost savings from the point of view of the contractor and healthier animals for the farmer.

TORO HELPED PREPARE ROYAL PORTRUSH
For this weekend's Open
 
Graeme Beatt (left), Royal Portrush course manager with Resink’s Doug Reid and a snap of some of the Toro fleet helpingg prepare the course for the 148th Open

The Open made an historic return to Northern Ireland for the first time in 68 years this weekene and brought golf’s oldest international Championship back again in Royal Portrush in County Antrim.

 


On 18-21 July 2019, The Open made an historic return to Northern Ireland for the first time in 68 years and brought golf’s oldest international Championship back again in Royal Portrush in County Antrim. As the club prepared to host the 148th event Toro is honoured to have played a role in helping prepare the course.

 

Graeme Beatt (left), Royal Portrush course manager with Resink’s Doug Reid and a snap of some of the Toro fleet helpingg prepare the course for the 148th Open

 

As expected, preparations for The Open are years in the making and Toro has not only been there every step of the way since the news broke in 2015 that Royal Portrush would be the 2019 host, but for the last 25 years.

 

Course manager, Graeme Beatt, who joined the club in 2014, comments: “The relationship between Royal Portrush and Toro is a quarter of century old and for us there is no better machinery partner to ensure the optimum conditions for the players as well as the eyes of the sporting world.”

 

Preparing the all-important course, crews used Toro’s Flex 2120 pedestrian mowers for the greens, Reelmaster 3550-D and 3555-D mowers on the fairways, approaches and surrounds, Greensmaster 1000 and TriFlex 3400 on the tees, Reelmaster 3100-D with Sidewinder system on semi-roughs and Groundsmaster 4500-D on the roughs. In addition, the team used the Greensmaster 3250-D and GR1000 on the practice area and the ProCore 648 for aerating the courses. 25 additional Toro machines from Reesink Turfcare, the sole Toro distributor in the UK for golf and sports fields equip-ment and irrigation products, have joined the 50-strong Toro fleet already at the club in the run-up to and during the Championship.

 

But it’s not just a successful partnership with Toro machinery, Reesink and Lairds Grass Machinery that ensured the course was tournament ready, but Toro irrigation too. In 2017, the irrigation system was upgraded to a Lynx central control system and Toro Infinity, Flex and B-Series sprinklers irrigate the rugged links course situated on the Atlantic coast.

 

“The location of the club is generally something of a challenge for an irrigation system, especially for the sprinklers,” says Graeme. “It’s quite a feat to deliver accurate spray in our unpredictable, windy and exposed conditions, but this has been no problem for Toro. We’ve been really impressed with the overall performance of the control system and sprinklers, but worthy of note are the B-Series sprinkler heads on the tees. They’ve really been put to the test and withstand all sorts.”

 

Of course, it’s not just an irrigation system that’s new for The Open. The world-famous Dunluce course has been extended from 6,867 yards to just over 7,300 yards and every hole has had some work in varying degrees, none so much as the 17th and 18th holes which have become the tented village areas and two new holes created at seventh and eighth.


22 miles of fibre optic cable were installed with 12 miles of fibre ducts, 2,200 artic lorries-worth of equipment were used for the build and de-rig, 24 greenkeeping volunteers were selected and a record-breaking number of tickets were sold.

 

In fact, it’s this last fact that’s caused the only hiccup in the journey to being tournament-ready Graeme explains: “No Open Championship has ever sold out and when this one did, and in record time, the decision was made to release a further 15,000 tickets – that means we could have had up to 230,000 spectators come through our gates! At that point we knew we needed to revisit the already established catering areas and extend them to accommodate this, which involved a lot of extra work. Let’s just say the Toro Workman MDX-D and HDX utility vehicles were really put to the test over this time moving kit around the course and aiding the team in construction work!”

 

Toro was honoured to play a role in helping prepare the course at Royal Portrush for The Open 2019.

Doug Reid from Reesink, who has worked with Royal Portrush for almost half of its 25-year relationship, says: “Royal Portrush has been nothing but consistent in its machinery purchasing over the years, but as expected in the last five years things ramped up and some fundamental replacements and changes to the fleet took place. The biggest change was the switch from the four-wheel Reelmaster 6700-D to the three-wheel Reelmaster 3550-D for a lighter tread on the fairways. The RM3550-D also happens to be ideal for a links course.

 

“The way we work with Graeme and the team is a definite partnership, and we’re glad that Toro remains the brand Royal Portrush has relied on for the last 25 years, and for its second Open Championship. Having the right equipment was vital in the preparation and performance for an event such as this, and we have worked closely with Royal Portrush to ensure all the tournament support needed from us was in place.”

 

It takes a tremendous amount of teamwork and coordination to prepare for an inter-national event but as Graeme says: “I feel lucky to have been chosen for the job; it’s been such an honour to be involved. Probably the biggest achievement is that we’ve managed to do all the preparations we have with minimal disruption to our members. We’ve had their unwavering support, it was worth it to see their course presented on the world stage, challenging the world’s best golfers for golf’s greatest Champion-ship!”

BAUER UK & IRELAND TEAM TAKE CHARGE
Of specialist slurry application systems
 
Rob Jackson (left) and Adrian Tindall of Bauer

Sales and service support for specialist slurry application systems for Claas Xerion tractors are now being handled by the Bauer team in the UK and Ireland.

 


Sales and service support for specialist slurry application systems for Claas Xerion tractors are now being handled by the Bauer team in the UK and Ireland.

 

Bauer Group acquired German manufacturer SGT in 2015 to expand its portfolio of waste handling and field application solutions.

 

SGT (Silage & Gulle-Technik) is best known for a slurry tanker loading system and large capacity mounted and semi-mounted tanks for the Claas Xerion, which converts this four-wheel drive tractor into a self-propelled slurry spreader.

 

“Bauer initially chose to leave sales and service support for the UK and Ireland in the hands of a Netherlands-based agent,” explains Adrian Tindall, Bauer sales manager. “But now my colleague Rob Jackson and I have responsibility for these products.

 

“They are complementary to the Bauer range of high-specification trailed slurry tankers, pumps, stirrers and separators, and both dealers and end users will benefit from our direct support.”

 

A 30,000-litre capacity semi-trailed slurry/digestate tanker on a Xerion 4000 S-Trac with front-mounted filling system

 

Soon after acquiring SGT, Bauer applied its expertise in poly-tank production - a hand-laid polyester laminate manufacturing process - to produce a new mounted tank for the forward control Xerion S-Trac.

 

Other Bauer products acquired with SGT include steel semi-tankers towed from a chassis-mounted coupling in a configuration that transfers more of the tanker’s weight to the tractor wheels for optimum traction and stability.

 

“These high-capacity solutions for slurry and digestate application are popular with large-scale contractors needing to handle very large volumes of material,” notes Adrian Tindall.

 

“They can now be sourced through UK and Ireland dealers with technical advice and after-sales support direct from Bauer to the same high standard as for the trailed tankers and other equipment.”

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