Unsurprisingly, the news out of the blue from Honda last week, that they are cutting around a quarter of their dealer network, has not gone without comment.

Dealers have been discussing in online forums and today we hear from Service Dealer founder Chris Biddle, who takes us back to the beginning for Honda lawn and garden in the UK, recalling their launch at the Mostpur Park IOG show in 1978. Chris offers a historical perspective on the development of Honda as a major player in the garden equipment sector in this country and reflects on the disappointment of dealers who have shown loyalty to the brand over many years.

Reading about the impact that Honda made with their first appearance at that show in the late 70s, made me realise just how integral a part of our sector our trade shows and exhibitions truly are - or at least have been until now. What will their standing be in years to come? Has their enforced absence this year, gone some way to diminishing the importance they play in the industry's calendar?

Immediate future for trade shows

This was one of the subjects discussed in another group video call held by Service Dealer this week, once again with senior representatives of manufacturers, business service suppliers and trade associations.

With last week's announcements that LAMMA had pushed back their show from January to May and SALTEX were consulting visitors over their opinions on show timings, it was a topical subject to consider.

The consensus amongst those on the call was that it was of course only right that LAMMA had delayed - and right that SALTEX might be paving the way to potentially change their scheduling. However, it was thought that probably LAMMA hadn't actually moved deeper enough into the year, with May still appearing to be somewhat risky timing. In terms of SALTEX, there was talk that if organisers were to consider reverting to their original November date, that might be prudent.

It was the question over the appetite of their customers to attend a trade show in first half of next year which was one of the primary concerns for these suppliers. Will punters be prepared to turn up to a crowded, indoors exhibition hall?

The other primary concern of course, is for the health and safety of their own teams and for their customers. To guarantee this (if we're not all fully vaccinated!), will mean many procedures will need to be place - which will frankly, diminish the quality of the show.

It was said how it's hard enough to hear people speak on those busy show-floors at the best of times, let alone when everyone is wearing masks. Stands do tend to get swamped at peak hours, so implementing a one-way entrance and exit system from the stand, would be impractical to police. And a concept that had apparently been discussed by show organisers, of exhibitors pre-arranging visitor appointment times to meet with customers, simply did not hold an appeal.

As one manufacturer said, they are not as interested in speaking to people they already know at a show, as they are picking up brand new contacts who may not have heard of them before. Which by definition, can't be achieved via appointment.

There's no question that many manufacturers in principal want to support shows. Reaching a relevant, engaged audience directly, is of course of value. There were questions raised however, about whether the events of 2020 have changed the established landscape? Will the big boys feel the need to return if they have established their own ways of showing off their kit to their customers and dealers? There's certainly a question mark over this - although it was agreed that certainly so far, not much enthusiasm had been shown by audiences in our sector for virtual shows.

The feelings about live trade events next year seemed most neatly summed up by the comment, "I'd rather wait and have a good show, than rush and have a bad one."

Disintermediation

The conversation then turned to an area we've been discussing on here and with dealers lately, of disintermediation.

Service Dealer fed back to the manufacturers and suppliers on the call, the concerns we've heard from members of the network recently, that some feel they have been losing sales of certain items, mostly domestic, cordless products, to manufacturers selling direct via their own websites. Service Dealer described a restlessness which we'd picked up from some readers, regarding certain practices seen employed online.

In a frank discussion it was proposed to us that it's an inevitability that consumer expectations of the 'reachability' of the brands they buy, is changing. Dealers need to accept that lockdown has altered home consumers' attitudes and habits, and many now want to order online and have items delivered direct to their homes - as we all do in other areas of our lives.

We were told consumers are in charge of the buying procedure and are free to choose where they spend their money.

Dealers will therefore need to consider their manufacturer partners even more carefully in the future. Too many dealers are perhaps spreading themselves too thin, it was suggested, with a concentration on fewer brands required. Dealers will inevitably push back against the brands who don't support them and settle on the ones who do.

There was an acknowledgement that margins are essential and the network needs to remain profitable in order to maintain servicing facilities. It was suggested that dealers need to always emphasise their point of difference which they can offer consumers over the online alternatives.

It was said that dealers are either adding value or adding cost. If they don't accentuate that value they can add, they will be cut out of the chain by consumers. More so than ever, dealers should be positioning themselves as the high-end experts within their community.

After our discussion this week, it seems inarguable that with the changing of technology the landscape for garden machinery dealers specifically, is evolving. A case could be made that for certain types of products, it is diminishing.

Tough decisions will need to be faced therefore, about what brands continue to offer viable profitability for individual dealerships - and whether diversification down previously unexplored lines, could be a potential way forward.

On that subject, if any readers would like input into a further discussion on diversification and would be interested in joining our dealer panel, please just drop me an email.

Dealers have taken to online forums, including the Service Dealer website, to express surprise and disappointment at the news that Honda is cutting around a quarter of its network.

Reading through the comments posted, there appeared to be shock at the way Honda informed the dealers who were being cut. A letter was sent to dealers informing them of their removal from the network, with many suggesting a phone call would have been the preferred way of breaking the news.

Rodger Bentley of Rodger Bentley Power Equipment said on the Service Dealer site, “It’s a shame that after 33 years of selling Honda that no one had the guts to tell us as gentlemen.”

Also on the same site, Matt Hughes of Buckland Garden Machinery said, “It would have been nice to have been told, or even consulted on this, before receiving a letter.”

Added to this discussion online over the style in which dealers were informed, was an anger and cynicism at the reasons offered by Honda for how they decided who to cut. Several who lost the franchise were understandably keen to vent their aggrievement. 

Last week Service Dealer asked Steve Morris, head of the Power Equipment Division at Honda UK if there was any regret over the loss of these 50 dealers. He said, "It's mixed emotions really. We have a relationship with all of our dealers, so inevitably with some of those relationships coming to an end it's sad - and we thank those dealers, wishing them every success in the future. But I think the irresponsible thing to do would be to not recognise the pressures on our network and react to that.

"We haven't taken this decision lightly. We have given a lot of in-depth study to it, with the conclusion that for our dealers to be sustainable in the long-term, this is the right thing to do."

Service Dealer founder, Chris Biddle, who has monitored Honda's role in the UK lawn and garden market since its inception, offers his opinion on the situation here.

Reports from the U.S suggest that the former chairman and CEO of Briggs & Stratton, Todd Teske, has filed a sizeable claim in the bankruptcy case.

Todd Teske speaking on the Briggs & Stratton stand at 2019's GIE+EXPO, pictured by Service Dealer

The Milwaukee Business Journal states that is he seeking $11.6 million. It goes on to say that payments are expected to be in the range of 7 cents to 8 cents on the dollar.

According to the report, "It’s not clear whether Teske’s claim covers some or all of the payments that would have been included in his $8.8 million ‘golden parachute’ package."

The unsecured claim which U.S trade journal Rural Lifestyle Dealer says was filed on Wednesday this week (October 7th 2020) includes -

• Key-employee savings and investment plan: $2.77 million
• Supplemental executive retirement plan: $6.3 million
• Long-term incentive payments: $2.58 million
• Pension plan, employment agreement and life insurance policy: Unknown amounts

Following last week's announcement by Platts Harris of their intention to sell to the Russell's Group, some more details of the deal have been made by public by New Holland Agriculture and Russell's.

Heads of Terms are now agreed, and it's been said that both parties will work towards a completion by the end of October 2020.

Russell’s are based in Malton in North Yorkshire with seven current New Holland Agriculture depots in Yorkshire, Derbyshire and Northamptonshire, Russell's say they plan to integrate Platts Harris into their business with the retention of the Tuxford depot near Newark.

The Platts Harris territory covers the area of North Derbyshire, Nottinghamshire and South Yorkshire and will complement the current Russell’s territories around these areas.

Confirming what was announced by Platts Harris last week, the Platts Harris Darley Dale site will close with the territory to be covered from Russell’s recently opened Cubley depot near Ashbourne.

All Russell’s depots will now trade under Russell’s name from the end of October, including the Hallmark depots in Derbyshire and Northamptonshire, acquired by Russell’s in 2016.

Paul Russell, managing director at Russell’s, said, “We are looking forward to the challenge and opportunities the new territory provides whilst maintaining an excellent level of service to the existing customer base. With our dedicated team of over 150 people throughout Yorkshire, Derbyshire and Northants we look forward to growing our business in the new area together with New Holland.”

Pat Smith, business director UK & ROI at New Holland, added, “We congratulate Paul and all of his team on this announcement which demonstrates the continued growth and strength of our dealer network to meet the challenges of the future in our buiness. We look forward to supporting Russell’s in growing our business in the area and continuing to support all New Holland customers in the Tuxford and Darley Dale areas.

"We would also extend our thanks to all the staff, present and past, who have represented New Holland and Platts Harris over many years. Your fine heritage will be in good hands with Russell’s in the future.”

After 24 years with JCB in design and manufacture, Charlie Nicklin, CEng, MIAgrE has become the new CEO of the Institution of Agricultural Engineers (IAgrE).

Charlie Nicklin, CEng, MIAgrE

A chartered engineer, Charlie has held various senior leadership roles at JCB which included chief engineer for backhoe loaders and the Fastrac tractor range and engineering lead for Loadall products.

He grew up on a farm and from an early age had a fascination with all things mechanical. He studied agricultural engineering at both Reaseheath College and Harper Adams University and gained early experience working for a local Massey Ferguson dealership.

With first-hand experience of further and higher education and both the dealer and manufacturing side of the industry IAgrE say Charlie is ideally placed for his new position.

Charlie said, “I believe IAgrE has a key role to play in promoting the industry, ensuring visibility of the range of roles’ and showcasing how exciting and fulfilling it is to work in them. My experience in senior positions in a highly competitive global business, coupled with first-hand knowledge of technician-based route into engineering has given me a well-rounded knowledge of our industry.”

IAgrE president Paul Hemingway said, “We are delighted to welcome Charlie to the team. It is an exciting time to be leading the Institution. With an expanding world population and increasing demand for more efficient yet sustainable food production systems there has never been a greater need for inventive, professional, land-based engineers and a professional Institution to support and represent them."

Charlie added, “I am truly excited about working in a new environment and very happy to remain in the industry I am passionate about."

ARB & Grounds, the Derby garden machinery business, has recently acquired the intellectual property of The Internet Gardener Ltd meaning they now own the website www.internet-gardener.co.uk.

Elliott Davidson, owner of ARB & Grounds Equipment Ltd

The site had been running since 2006 by a family owned business before going into liquidation at the end of 2019. The online retailer used to sell garden furniture online from various retailers bringing in over 6 million in turnover in 2019.

Nottingham based entrepreneur Elliott Davidson, 25, who owns ARB & Grounds Equipment Ltd has also recently acquired Y Frame Discounts Ltd and is also the founder and director of Contrast; an eCommerce digital marketing agency.

Elliot says he has plans to bring the site back up and running and to bring the revenue levels back in his two year business plan for Internet Gardener. He says he is looking to build relationships with past suppliers, and is also looking to expand the product range to include garden machinery and equipment.

Elliott said, “I can’t wait to start building the site back up again and getting it back to its full former glory. I know that other similar UK businesses are doing over 20 million in the sector so there is plenty of room to grow this business further. This was an opportunity I couldn’t miss and I have major plans for Internet Gardener. Being an owner of an eCommerce digital marketing agency and also another seven figure eCommerce business has its perks, as I am able to take all of these past learnings, both successes and failures to help maximise our chances of moving forward.”

Elliott is also preparing to document his journey and as such is launching a behind the scenes video series of scaling an eCommerce company from £0 to £1 million in ARR (Annual run rate) within 12 months. This series is going to be called “Building a Business”.

Reesink Agriculture have announced they are the the new distributor for AgriMetal blowers and collectors in the UK.

A range of three low decibel three-point linkage mounted debris blowers and two high capacity collectors, for use by sports, grounds and other turf customers, are now available.

Reesink’s managing director David Cole said, “I’ve worked with AgriMetal before and recognise it as a popular blower line with great reliability and features, so when the opportunity arose recently to bring it in under our newly formed Agricultural division here at Reesink we didn’t hesitate. Customers responded to the brand’s performance, build quality and competitive pricing in the past and I am sure will do so again.”

There are three leaf and debris blowers available. All are tractor mounted with the BW2500 requiring 25hp at the PTO, BW3500 35hp and BW4500, 45hp respectively. They have an aluminium rather than steel impellor, which Reesink say, because it requires less energy at full throttle, delivers a quieter, smoother and vibration free operation.

Joining the blowers are two collectors, the Tuff Vac and Multi Vac. The Tuff Vac comes in two variants, PTO driven for use with a a 35hp+ tractor, or with its own 27hp engine allowing it to be towed by a smaller tractor or larger utility vehicle. The Multi Vac is pulled and powered by any 50hp or higher tractor.

Sam Fletcher has been appointed as business development manager for Stiga UK.

Sam said, "Stiga has a fantastic reputation in the OPE industry and I am very much looking forward to working alongside this great team. I believe I can bring a wealth of industry knowledge and a proactive attitude to an already excellent team. I am looking forward to adding even more value to the STIGA brand for its dealers and customers."

Gary Tully, sales & marketing director, said, "Sam brings to this new role a wealth of both technical and industry experience at OEM, distributor and dealer level having worked for Briggs & Stratton for the past 6 years and dealership before that.

"We are really pleased to have Sam on board."

E.P. Barrus has announced the appointment of Adam Field as their garden machinery area sales manager for the south east.

Adam Field

Adam has been involved with garden machinery from a young age having worked at his grandfather’s dealership, David J Attfield in Woodham for many years and finally managing it earlier this year.

“’I have been around garden machinery my whole life, and after my career as a vehicle technician garden machinery always managed to draw me back in," said Adam. "My background means that I understand the daily issues that our dealers have to face and how the current situation has impacted on their businesses.

“I am looking forward to working with the great brands that E.P. Barrus has to offer to dealers to gain additional sales in the current market”.

Phil Noble, divisional sales ,anager, Lawn and Garden at E.P. Barrus added, “We have been waiting to employ someone of Adam’s caliber to help dealers with our leading brands. His experience will be invaluable and I believe he is the right person for this important role, a great asset to our team here at E.P. Barrus”

Bernhard Company has appointed Patrick Collins as its new director of finance and operations.

Patrick, who joined Bernhard in September, will oversee finance and operations at the company's manufacturing plant, based in Haverhill.

He has worked in a variety of industries, and Bernhards say his financial experience in manufacturing companies such as Telefonica UK Ltd, BWI UK Limited and Honda UK will bring valuable experience to the team.

Bernhard and Company Chairman, Stephen Bernhard, said: “Patrick joins us at a challenging time, we are all very excited to welcome him into the business, his skills and experience will reinforce our ambitious strategy.”

Opico has appointed Harvey Sherwin as a new territory manager to cover East Anglia and South East England.

Harvey Sherwin

Harvey will take responsibility for the Opico, Sky, HE-VA and Strautmann brands.

Commenting, Charles Bedforth, Opico UK Sales Manager said, "We are thrilled that Harvey has decided to join Opico. He has a wealth of knowledge, most recently gained at a dealership in the eastern area and prior to that at Sulky UK and Gregoire Besson."

On his new appointment Harvey said, ‘I’m really pleased to be fully immersed on the machinery side again."

Harvey will be based from home in Bourne, Lincolnshire and can be contacted on harvey.sherwin@opico.co.uk or mobile: 07903 192386

Next year, Husqvarna will unveil their newest generation 90cc class chainsaw following the success of its iconic saws, including the 281 XP, 288 XP, 390 XP and 395 XP. With a focus on performance, manoeuvrability and durability, the new high-power chainsaw generation from Husqvarna offers the reliability and productivity that professionals need.

For the 2021 season, Husqvarna will offer a new 90cc class of chainsaw that has been developed together with professional foresters and tree workers from around the world. This next generation chainsaw comes with increased cutting capacity, superior ergonomics, and enhanced balance for optimal manoeuvrability. Paired with Husqvarna’s X-Cut chain and new professional light weight bars, both production fellers and tree care crews will now be able to experience the ultimate high-power cutting system developed for their most demanding tasks.

"The new 90cc class chainsaw from Husqvarna was designed first and foremost to exceed the accomplishments of its predecessors," says Gent Simmons, Senior Director, Global Tree Professional Portfolio at Husqvarna. "We have improved the cutting capacity while optimising the weight and refining the balance - all without compromising on durability. Whether you’re a logger operating in some of the most remote areas of the world or a tree care professional removing a diseased tree in the city, you can rely upon Husqvarna’s next generation of high power 90cc class to always perform."

Further details about the new Husqvarna 90cc class chainsaw generation, including its new technology, will be presented in 2021.

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