I read a comprehensive article this week, that I think anyone who has been experiencing stocking issues so far this year, would find fascinating - so that's pretty much every dealer then!

Entitled 'How the World Ran Out of Everything' it was originally published in the New York Times, but it appears to have been reproduced by outlets in multiple countries - because what our readers working in the UK outdoor powered machinery network have been coping with so far in 2021, is reflected globally in all sectors that rely on manufacturing. 

The central thesis of the piece by Peter S. Goodman and Niraj Chokshi is the concept of 'Just In Time' manufacturing - which refers to the practice of parts being delivered to factories right as they are required, minimising the need to stockpile them.

In recent years this approach clearly made good business sense. Simply put, keeping inventories thin meant higher profits. As the article says: "Just In Time has amounted to no less than a revolution in the business world. . . . it has enabled manufacturers to customise their wares. And lean production has significantly cut costs while allowing companies to pivot quickly to new products."

But did it go too far? The pandemic has clearly highlighted the frailties inherent in the concept. When we have dealer readers telling us that it is simply impossible for them to order a single ATV for example, from any of four different supplying manufacturers, something has clearly gone badly wrong.

The article goes on to ask if what we're seeing now will fundamentally change the attitudes of manufacturers in the future? Will more stockpiling take place as a buffer against similar incidences happening again? Or, as some business experts predict, will the pursuit of cost savings once again trump any other considerations?

Referring to the situation that the world finds itself in today, there is quote in the piece from Jim Farley, the chief executive of Ford Motor. Rather sadly for everyone, he says, "The impact to production will get worse before it gets better" - which is precisely not what a dealer who has a customer with money to spend on some new kit, or is desperate for a part to fix an existing machine, wants to hear.

The authors continue to explain a phenomenon that we have been discussing this year with our panels of manufacturer representatives and dealers, regarding the global supply chain. This being the idea that where a delay crops up in one part of the world for a particular component, that will inevitably and inexorably lead to further knock-on effects somewhere else in the manufacturing process. And that is all before we have even taken into account the state of the worldwide shipping industry! It truly is a perfect storm.

Lack of promotion

In my position as editor of a trade journal, in a normal year I would be flooded with press releases about manufacturers' new machinery launches that are in the pipeline - especially ones promoting new kit that will be on show at forthcoming industry exhibitions. 

There are two commercial turfcare shows in the diary, which are not very far off now - BIGGA's Festival Of Turf and the Sports & Grounds Expo at Malvern. I'm pretty sure I'm right in saying that I haven't received a single piece of information regarding new machines planned to be exhibited at either of these events thus far.

Now this lack of promotional activity could be due to lingering uncertainties surrounding roadmaps and potential lifting or otherwise of restrictions. That would be understandable. However, it doesn't seem to be too much of a stretch either to speculate that manufacturers aren't shouting about these things because they can't get hold of new machines themselves. Or perhaps more likely, they don't want to have an example of a certain product on their stand, leading to repeated conversations with visitors along the lines of 'Sorry, we won't be able to deliver it to you for at least 6-8 months!".

Goodman and Chokshi's article ultimately asks the question, will the events of this year change the way the world works? Not wanting to spoil the conclusion of the piece for you, but considering how this lean style of manufacturing has delivered healthy profits up until now, there is a school of thought that believes once events settle down, the absolute pursuit of maximum profits will once again be the overriding priority.

Everybody wants things to return to normal and it's in everyone's interests that the industry is profitable. It would however, be nice to think that some lessons are also learned along the way.

60 Second Survey

You may have noticed we're running a 60 Second Survey today - for dealers only. Related to what we're talking about here, we're interested in your views on customer loyalty currently and what you’ve experienced in your own dealership.

Are your customers shopping around? Are they moving from brands that they’ve been with for generations? We’d love to hear your views.

Please take a few moments to take our 60 Second Survey today - as ever, your feedback is very much appreciated. 

TAKE THE SURVEY