Service Dealer held another group video call this week, with a selection of representatives from manufacturers, suppliers and business service providers, to get their take on the current industry temperature.

As ever, we'll be keeping the participants anonymous in order to help facilitate an honest and frank conversation. We thank the group who joined us virtually on Wednesday for their time and forthright opinions.

Stocking

We began, as we have many times over the past couple of years, with discussion as to where our panel saw the current supply situation. Not that anyone was hanging out the bunting quite yet, but I think it's fair to say that a quiet optimism was sensed.

The cause of many headaches these past couple of years in terms of getting goods from factories around the world to dealer's showrooms has been obtaining shipping containers - and their attendant spiraling costs. Well this week we heard several people talk of containers finally becoming easier to get hold of and their prices reducing. These cost decreases do not mean charges are back down to where they were previously, but consensus was they had certainly reduced from their recent peak. I don't think anybody on the call expected them to ever revert to pre-pandemic levels.

This improvement in the container situation meant that bottlenecks at ports were less frequent, meaning there were slighter fewer bumps in the supply-chain road. Companies were monitoring the situation closely but hoped things were moving in the right direction.

Demand beginning to wane?

What did crop up as a result of this conversation though, was an opinion that we hadn't heard expressed before. We were told that some suppliers are sensing that customer demand might be starting to drop off.

One panel member told us that dealers were now not putting in as many orders as have been seen lately, meaning their sales teams were now out selling to dealers once again, rather than just taking orders.

Another supplier told us that their order book is still filling up quicker than they can deliver, however this increase in demand is certainly slowing, with sales not racking up at the same fast rate as they have been these past two years.

A separate view was that manufacturers are perhaps somewhat blinded to what the true current demand is in the market right now. They have been preoccupied for so long with the fulfillment of back orders, fully comprehending where today's actual demand levels are at, is difficult.

But what do you our dealer readers think? Are you starting to feel you may have enough orders in the system to fulfil customer demand? Are you sensing that customer demand that may be waning?

We were told that end users' buying habits have certainly been forced to change, with their realisation that big-ticket items are no longer available immediately. It appears that commercial customers are accepting of increased forward planning for purchases. It was suggested that so too will dealer ordering habits need to change, with increased strategic purchasing a future trend.

Just in time

If ordering habits might be in need of updating, one thing our panel was in agreement about that wouldn't be altering is the 'just in time' manufacturing philosophy.

Quite simply that is how manufacturing companies are set up to make profits for their shareholders. These huge corporations do not make money by having warehouses full of machines, sat collecting dust on pallets. They get produced, get sold, get shifted. If anything we were told the process would only become slicker.

Yes, there can be hold-ups we were told, especially with component production - which could potentially continue with some areas of the world still experiencing covid shutdowns - but in principal, there will be no change.

Just in time was also favoured as from a manufacturer's perspective it meant that their latest product innovations were always fresh to the market. The system made sure it was their most up-to-date machines that were always pushed to customers.

Recession required?

Finally, there was some discussion around an idea that cropped up via our last call with a different group of supplier representatives - that a recession was now needed in order to take the wind out of a market suffering from unrealistically high demand.

The argument last time said that the industry would never be able catch up with the machinery production required, all the time that customer clamour for product was so high. Something dramatic, such as an economic downturn, was the nasty-tasting medicine that had to be taken for 'real' demand to be revealed.

Several on the panel this time around expressed hope that a recession wouldn't hit, whilst others felt it was inevitable - "we're on a train heading right for it", is how one put it.  However, where opinion did seem to differ from the thoughts heard on our previous call, was that even if there were to be a recession, it might not have that big an impact on our sector anyway. Our old friend the weather was cited as being much more influential.

It was suggested that yes, the sales of £150 mowers by the volume retailers could see an impact if a recession bites. But dealers and manufacturers who are supplying big ticket items, to big ticket buyers, probably wont see too adverse an effect - which must be encouraging news for dealers of quality products and quality service.

A recession hits different parts of the buying public in different ways it was said. Those rich customers buying expensive mowers, tractors and robots, are likely to carry on buying those top-end goods from dealers as their bank balance and desire for those items wont really change.

We heard a confidence that the premium products offered by these manufacturers would continue to be ordered by the dealers, who in turn would not struggle to sell to their customer base. There was a genuine optimism that dealers who are not involved in box-shifting at the low-end of the market, would continue to see good sales.

Whilst they weren't 100% saying the sector is recession proof - they certainly seemed to feel it nearly was! As dealers have experienced in years gone by, what they felt would be way more problematic would be a season of extreme weather.

Once again Service Dealer thanks our panel for their time and views.

According to figures released by the AEA the continuing impact of disruptions to global supply chains is still apparent in the number of agricultural tractors being registered in the UK.

In June, 938 machines were registered, 36% lower than in the same month last year.

Agricultural economist at the AEA, Stephen Howarth said, "June 2021's figure was unusually high but this year's total is towards the bottom end of the range seen for the same month in recent years, although the extended Bank Holiday weekend at the start of the month may have had some impact.

"The total number of machines registered during the first half of the year reached 6,420. That is 6% fewer than in January to June 2021, despite reports that there is no shortage of demand, indicating the scale of the supply chain challenges facing manufacturers.

"Registrations for the year to date were still 6% above the 5-year average, though."

The Colne and Haydock based commercial turfcare machinery dealership, GGM Groundscare, has unveiled several staff appointments, enhancing customer support, in line with their "unprecedented business growth".

The business says they have worked tirelessly over the past two years to ensure customers remain supported and this has resulted in a recruitment drive through which they have appointed five new members of staff within the after sales team, to support its growth and customer service offering. 

L-R: Ryan Bradshaw and Craig Bradshaw

Based at the Haydock depot, Craig Bradshaw has joined as service coordinator in a role that involves the management and booking of all service activities and is joined by Ryan Bradshaw, who comes to the business as a service engineer.

Matt Lord has recently joined the service team on an industry approved Kubota partnered Apprenticeship Scheme set up for training engineers of the future. Also, Gary Taylor, who has worked for GGM Groundscare for 7 years is taking up a more ‘hands on’ role as workshop foreman within the workshop as well as heading up the business’s new operator training programme. 

Growth developments at the Colne depot include the promotion of Danny Bannister to aftersales development supervisor, with Martin Stoney stepping in to his previous role of service coordinator earlier this year and Billy Eastell is due to join the service team as an apprentice in the coming weeks.

Keiran Handford

Keiran Handford has also taken up the role of trainee parts advisor and joins the existing experienced parts team lead by Danny Bannister.

The recruitment of the two apprentice roles and the trainee parts role, ensures the business continues its philosophy of providing job opportunities for young people in the area.

Managing director Chris Gibson said, “We’re delighted that the business continues to go from strength to strength and these changes reflect that.

"Customer service is absolutely pivotal to everything we do and we take great pride in building long lasting customer relationships, based on anticipating needs, solving problems and delivering on time, every time."

Jon Lewis has joined Price Turfcare, the UK distributor of the Ventrac all-terrain compact tractor and associated attachments, in a regional sales management role.

L-R: Jon Lewis and Rupert Price

Jon has enjoyed a successful 22-year career in the groundscare industry, starting as an operator mowing grass for grounds maintenance contractor Smart Cut, before moving into his first sales role with Parks & Grounds Machinery. He later joined TH White, operating out of their Redditch depot, where he spent five years as area sales manager before joining Lely (now Reesink). After a successful nine years selling Toro products, he moved on to John Deere dealer Farols, again in an area sales management role, before making his latest move to join Rupert Price and the UK Ventrac operation.

“I have nothing but praise and respect for Rupert for the way in which in he has bought the Ventrac product to market here in the UK. I have supported him since he launched the business because of his integrity; he simply does right by the customer, they always come first. 

“He leads a small but flexible group of people and thoroughly deserves the success he has achieved. To have sold a significant number of machines in the UK from a standing start in 2017 is some achievement, especially when you take into account two years of Covid.

“I’m really looking forward to the challenge, but also to the opportunities it brings."

Rupert Price added, “I’m delighted to have secured Jon’s services and welcome him aboard; he is very well known, not only across the West Midlands, but also throughout the industry. He’s a larger-than-life character and a shrewd businessman who knows this industry inside out! We recently returned from the SAGE event where he slotted into the team perfectly. I have no doubt that he will be a great asset as we grow the business.”

Organisers say the Outdoor Demo Yard at this year's Equip Exposition, is newly expanded to nearly 30 acres.

The trade event will be held from October 18th - 21st 2022 in Louisville, Kentucky at the Kentucky Exposition Center (KEC). The show draws thousands of attendees and 1,000+ exhibitors that cover 675,000 square feet of indoor exhibit space in addition to the Outdoor Demo Yard, where attendees can get hands-on to see how the equipment handles and performs before making buying decisions.

“Companies that have never reserved outdoor demonstration areas to show their products are lining up to be outside this year,” says Kris Kiser, President & CEO of the Outdoor Power Equipment Institute (OPEI), which owns the show.
 
The demo area hours start earlier this year, with additional Wednesday hours from 12pm- 5pm. It' also open on Thursday, October 20 from 9am- 5pm and on Friday, October 21 from 9am-1pm.
 
“As the industry innovates, more technology is being introduced into landscape care and planning. The Outdoor Demo Yard is where you can see and try the newest developments in our industry – from the latest robotic and zero-turn mowers to the toughest UTVs,” said Kris. “Additionally, changing regulations in California are forcing sizable shifts in what equipment can be sold and used, and Equip Exposition is the best place to see and get a hands-on experience with the equipment of the future.”
 
Also back by popular demand is the UTV Driving Experience, where attendees can drive and compare the latest vehicles while putting them through their paces on curves, hills, rocks, and bumps. Attendees 16 or older with a valid driver’s license will be able to drive alongside a representative of the manufacturer who can answer questions about the vehicle.

The CEMA Business Barometer for June was recently released.

It reports that the general business climate index for the agricultural machinery industry in Europe has continued to decrease slightly after its sharpest drop since the crash in the wake of COVID-19, but is, in total, still holding at a positive level.

In June, the index decreased from 16 to 13 points (on a scale of -100 to +100). It says sentiment among livestock equipment manufacturers has turned sharply into negative, while business climate remains much better for components and, to a lesser extent, for arable equipment.

Overall, the current business situation has deteriorated noticeably once again compared to the previous month. However, expectations for the coming six months have risen slightly for the first time since the beginning of the year.

Also, with regard to the full year of 2022, the European industry representatives still forecast in average a +5% increase in turnover for their company (unchanged compared to March). Price increases and shortages on the supplier side continue to challenge the industry heavily, but appear to moderate slightly. Meanwhile “only” 40% of the companies are planning a temporary production stop due to bottlenecks in the coming four weeks.

At the same time, the survey participants are no longer entirely optimistic with regard to future turnover from some markets, especially Austria and Poland (apart from Eastern Europe, which continues anyway deeply at the bottom of the confidence ranking), but remain bullish with view to major markets such as Germany and France.

Visitor registration is now open for November's SALTEX, via the show's newly relaunched website.

Sarah Cunningham, GMA director of commercial and events, SALTEX event organisers, said: “As the biggest event covering the supply and management of products and services that help to create high quality leisure, recreation, and sports surfaces, it’s important that the new website is easy to navigate for visitors and exhibitors. I’m confident that the new site will deliver for both.”

Speaking about the rebrand, Andrea McMahon, GMA director of communications said, “SALTEX represents innovation and progression. Its where the industry comes together to build networks, knowledge and learn about new innovations. It’s forward-looking and the brand needs to reflect this and we hope the new look strikes the balance of being modern and progressive, whilst retaining an element of simplicity connecting it to the previous look.”  

The opening of visitor registration coincides with the launch of the 2022 show’s social media campaign, #aheadofthegame. The show's visitors are being encouraged to use the tag, along with #SALTEX2022 on social posts to share what they learnt at the show that puts them ahead of the game. Likewise exhibitors are being encouraged to use the tag to promote what they will be bringing to the show. 

Sarah continued, “The event will host over 400 industry brands in one place – all lining up the best products on offer for today’s growing needs. And, as always, there will be a comprehensive schedule of speakers across three theatres sharing their knowledge and expertise - with sustainability and environmental pressure at the forefront of the 2022 agenda.”

The show takes place at the Birmingham NEC on 2-3 November.

The new STIHL MSA 300 is the most powerful cordless chainsaw in the AP System. Suitable for felling, cross-cutting, snedding and processing, the MSA 300 offers forestry professionals, arborists and landscapers plenty of power for taking on larger cutting tasks. 

Powered by the new AP 500 S battery, the MSA 300 is recommended with a 16” Light 04 guide bar and .325” RS Pro chain for fast cutting. The recommended cutting attachments are identical to the popular MS 261 C-M, with a maximum recommended guide bar length of 18”.   

The MSA 300 is compact, well balanced and features STIHL’s anti-vibration system for comfortable working over long durations. Other features include a captive nut on the sprocket cover, an adjustable oil pump, durable die-cast magnesium components and an air filter to aid effective air cooling.  

Also featured in this model is an LED digital display for active user notifications, showing the operating mode in use, the status of the chain brake position, the on/off status and even temperature warnings to prevent overheating. 

Three operating modes limit the maximum chain speed, helping to match the performance to the task at hand and extend the battery run-time. Eco mode limits the chain speed to 20 m/s and is ideal for cutting smaller logs, while the mid setting has a chain speed of 24 m/s suitable for felling cuts. The highest performing mode features fast acceleration and a 30 m/s chain speed best suited to snedding.

The MSA 300 is compatible with the STIHL Smart Connector 2 A, plugging directly into the control module to collect valuable data such as run-time and operating speed history. This data syncs to the user's smartphone and informs the user exactly when maintenance tasks should be completed, improving efficiency and helping to reduce machine downtime. 

For more information on STIHL’s new MSA 300 or its range of professional cordless tools, please visit www.stihl.co.uk. 

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