THE CONSOLDIATION QUESTION
A trend for the dealer network?
by Service Dealer Editor, Steve Gibbs
 
Steve Gibbs

Firstly today, a warm welcome to the industry for a young whippersnapper, making his way in the sector.

 

I do hope that (checks notes), Service Dealer Lifetime Contribution Award Winner, David Withers, finds his feet in his new role as co-owner and company chairman at ATT! Seriously though, it's fantastic for the industry that David's wisdom, knowledge and skills will continue be felt in the specialist groundcare machinery market. We look forward to catching up with him at all the shows and exhibitions throughout the year!

 

Elsewhere in our news today, we include another story of consolidation in the dealer network. Following on from the development we covered last week of Mike Garwood Ltd of Alton, Hampshire, and the Isle of Wight becoming part of Haynes Agricultural Ltd, we feature a similar story taking place in different part of the country. We feature the news that Hamilton Ross Group has agreed Heads of Terms to acquire Ancroft Tractors Ltd, with the transaction expected to complete on 31 March 2026, subject to final agreements.

 

We've seen stories such as these quite regularly in our news pages over the past couple of years. Inevitably it raises the question as to whether this is a trend specific to our readership of independent machinery dealers, or simply a natural evolution that would be seen in any sector?

 

I suspect for some readers, the word 'consolidation' itself might sound uncomfortable or ring alarm bells? The strength of our sector has always been its independence - family-run or owner-managed businesses rooted in their communities, built on long-standing customer relationships and hard-earned reputations. The idea of that landscape changing might perhaps cause a nervousness?

 

One likes to hope though, that for some smaller operators - particularly those facing succession questions - joining forces with a larger neighbour can represent a sensible and positive move. It can secure continuity for staff, stability for customers and value for the owner. From what we can gather from the official notices we've received from recent examples we've covered, these deals do not appear to be distress sales but carefully considered decisions.

 

From the buyer’s perspective, there will be multiple positives. Expansion can bring economies of scale, greater buying power and a broader geographic footprint. It can strengthen relationships with suppliers, facilitate new partnerships with brands not held previously (meaning an expanded customer base) and spread overheads more effectively. 

 

Customers themselves may see little difference in the short term other than a name change above the door - especially in circumstances where all original staff are kept on. In the longer term, they may benefit from stronger parts support, more specialist technicians and improved facilities. A larger group can often justify investment in areas that would be harder for a smaller, standalone dealer to fund.

 

I suppose for those smaller dealerships that still remain, it may be daunting finding themselves in locales alongside much larger grouped enterprises. However, smaller doesn't necessarily mean a business is at a disadvantage. This is when those traditional traits of our dealer readers kick in - agility, personal service and strong community ties. There will remain a real value in being local, accessible and relationship-driven.

 

But what do you think? Is consolidation inevitable, or is there still plenty of room for thriving small independents? Are we at the beginning of a sustained period of moves such as these in the independent dealer network, or are recent deals isolated cases?

 

Please let us know your thoughts in the comments below - or feel free to drop me a line in confidence if you'd prefer.

In this issue
EDITOR'S BLOG
THE CONSOLDIATION QUESTION
PARTNERS
Campeys
CRAMER
Dewalt
Echo
EGO
Evopos
Garden Trader
Henton & Chattell
Husqvarna UK
Toro UK Limited
uni-power
TurfPro
NEWS
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DAVID WITHERS TAKES UP NEW CO-OWNER ROLE
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