If you've had a look down the stories in our Update today, you'll have seen it's the quite the week for developments in our sector.

Honda cutting the size of their network, dealer buy-outs, various dealer franchise realignments, LAMMA moving their date for next year, and SALTEX testing the water for what must be an inevitable schedule change for themselves as well. Never a dull moment.

Which has been the case all year - and this was reflected back to us here at Service Dealer on a closed-call we held with a panel of dealers from around the UK this week.

We kept the call private and won't be disclosing who participated as we wanted an open and honest discussion to take place. We wanted the dealers on the call to feel they were able to speak frankly about what kind of season they've experienced, the support they've received from their suppliers and what concerns they have going forward.

After the call, Service Dealer owner, Duncan Murray-Clarke who chaired the discussion, said, "Our dealer call this week was so productive in terms of discussing the positive elements some manufacturers have displayed over the season, as well as evolving dealerships to take on the future.

"We will be working closely with a dealer panel over the coming months to investigate opportunities and in particular ways dealers can maintain revenue and healthy margin levels to support their overheads. If you would like to be considered for the panel please do let us know.”

Strong year for dealer business

To start with we heard some mostly very positive news about how overall business had been for these dealers this season. With all that's gone on, 2020 could have been an utter disaster. I think many were fearing the absolute worst for their dealership back in March, when remember, it was wasn't clear initially if doors were even allowed to remain open!

However as the year progressed, from what we were told, it has been a much better season than anyone had the right to expect. For domestic, and surprisingly also for commercial dealers, at worst the consensus seems to be business has fared the same as 2019. For many of these dealers though, they are saying they have surpassed last year.

Things are slightly different for agricultural machinery dealers however, with the well documented downturn in tractor registrations year-on-year. These guys have been incredibly busy keeping their farming customers farming - there just hasn't been the new machine sales.

This successful season for the grasscare side hasn't come easy though. Many spoke of the physical and mental stress they have been under, both to keep the business afloat initially - and then to push on. Aiding many in this has been the use of new, digital tools. The value of using these methods to establish the dealership in the hearts of minds of the local community was stressed. With the help of these methods, and other old fashioned traits of dealer ingenuity and entrepreneurship, many have caught up on ground lost during the height of lockdown.

One frustration which we heard repeated though has been the delays in supply, or the lack of stock, during the past few months. There have been times, we were told, that showrooms have never been more empty. Clearly there is an understanding why this disruption to the system has occurred - but for many, with customers chomping at the bit, it's been a real issue. An issue which may have prevented a good season becoming a blockbuster one.

Despite this though, it was genuinely heartening to hear just how well many had done, under quite exceptional circumstances. It reaffirms what we've always known - the network is a resilient and industrious entity. This has been proven many times over this year - arguably more so than by some of their suppliers.

Issues with suppliers

Because turning to less positive things, that word which we've used on here in recent weeks, disintermediation, was discussed. It was something which dealers of domestic machinery could definitely relate to. Once again we heard the concept referred to as a stealthy threat to this sector. Dealers in the homeowner market spoke of, without doubt, losing sales to their own manufacturers who were offering discounts or packages which the dealers simply could not afford to match.

It's not an issue on larger, more commercial kit we were told. It's the smaller, usually battery-powered products, which can be sold online in boxes and shipped directly to the home consumer, where the problem is arising.

We heard from dealers who are concerned that certain manufacturers are overlooking how important it is, that the network remains profitable. They need margins in order to pay skilled staff to keep their service departments running. A department which the manufacturers are relying on to be there to support the products they've sold direct!

It's clearly a frustrating and concerning state of affairs. Both sides need each other - but some dealers of domestic machinery are telling us they are not happy with the actions of particular companies. Both in terms of disintermediation and the levels of support offered this year.

Credit where it's due though. We did hear dealers speak up on behalf of certain manufactures who they cited as really stepping up and being there for them during this unsettled period. Both Stiga and Yamaha were singled out for praise.

The question arises, if this conflict of interest is as real as we're being told, what can be done to work it through? It was suggested that dealers should think about increasing the levels of constructive feedback they offer their suppliers. Opinions and ideas of how solve the issue, rather than just grumbling and not doing anything about it, was raised as something helpful which dealers could do. 

Retailers for whom it's possible, are apparently looking to concentrate on the bigger, more professional end of the market. The customers for those products are always going to require a dealer contact and won't be tempted to buy direct online. The problem with this approach of course, is it won't work for everybody's business and there's always going to be a limit of the number dealerships required to sell this machinery.

One feels that this will inevitably prove to be an ongoing point of discussion. If the sale of domestic, cordless machinery is a diminishing market for specialist dealers, one suspects that the shelves of showrooms around the country could begin to look quite different. Other revenue streams will be sought.

Diversification is a term not unfamiliar to the network and perhaps it will become a topic we'll be discussing a lot more over the coming months and years. 

Platts Harris announced this week that, subject to contract, discussions have reached an advanced stage to sell their "interests, goodwill and assets" to the Russell's Group.

Platts Harris Darley Dale branch as pictured on their website

A statement on their website says that it is expected that a full agreement will be finalised by the end of October.

The statement goes on to say "Extremely sadly, we also have to announce that is it proposed as part of this consolidation within the Russell's Group for the closure of our Darley site and the proposed relocation of a number of employees to Russell's Ag at Cubley".

The statement signs off thanking their customers, saying, "Our sincere gratitude to you for your friendship, professionalism and business relationship that we have enjoyed with many for you for generations, we hope this will continue for many years with Russell's Ag."

Effective from yesterday (1st October 2020) AGCO has agreed changes with existing dealers in north England and south Scotland on the distribution of the Fendt and Massey Ferguson brands.

Under the announced changes Carrs Billington Ltd becomes an exclusive Massey Ferguson dealer, and will focus their organisation across an extended territory in southwest and southeast Scotland.

The dealership will continue to operate from established Massey Ferguson outlets in Annan, Carlisle, Penrith, Morpeth, Hexham and Barnard Castle, and anticipate another location will open in southwest Scotland to support a strengthening of the overall Carrs Billington Ltd business in this extended area.

The distribution of Fendt products will be via three existing AGCO dealers. Johnston Tractors Ltd will add the Fendt franchise to the Valtra franchise already held in Carlisle, Penrith and Dumfries, while Brockhills of Yorkshire Ltd will extend their existing Fendt responsibilities further north, serviced from their depot in Thirsk. Ancroft Tractors Ltd will also extend their Fendt territory south from the Berwick-upon-Tweed and Kelso depots to complete the full coverage of the brand across the area, while also continuing their long-established representation of Massey Ferguson.

In an official statement AGCO said, "These changes, which will be fully implemented by 1st April 2021, support AGCO’s long-term strategy driving brand exclusivity, full-line responsibility, and appropriate brand bundling to support the growth of each brand."

Mark Casement, director distribution management for AGCO added, "“These new distribution arrangements are the latest changes that will strengthen brand dedication and continue to deliver market share growth for each of our brands.

"We have a clear strategic direction that places an emphasis on maximising brand exclusivity while always improving dealer viability, and we are pleased to make these changes while offering all our valued partners the opportunity to grow their business with us in the years ahead.

"We are confident that this focus will continue to develop the excellent customer-centred support that customers across the area enjoy and expect from our dedicated dealer partners.”

The organisers of the LAMMA agricultural machinery exhibition which had been due to take place at the Birmingham NEC in January 2021, have this week announced a change to the schedule.

The show will now take place at the venue between 25-26th May 2021.

In a statement the organisers said the decision was based on "the government announcement last week and the many uncertainties surrounding the COVID-19 pandemic".

Elisabeth Mork-Eidem, group events director at AgriBriefing said, “The LAMMA show is a key part of the industry calendar, and we have seen an amazing amount of support from all our loyal exhibitors throughout this year.

"We know how much everyone wants the show to take place; we’ve had record advance bookings with more exhibitors being signed up, even in the last few weeks, and lots of interest from visitors to attend. However, pushing on with a January show under the current circumstances does not feel like the right thing to do.

“This has not been an easy decision but listening to the wishes of visitors, exhibitors and sponsors, this will provide the best opportunity to ensure that everyone gets the experience and the value they have come to expect from LAMMA.”

LAMMA went on to say that the show will take place in May for one year only. The 2022 show is still scheduled to take place in January.

The organisers of the SALTEX exhibition have sent out a survey to visitors this week, canvassing opinion on timings of the show.

The show which was originally set to hold its 75th anniversary edition in November this year, is currently scheduled to take place at the Birmingham NEC on 3-4 March 2021.

CEO of organisers, the Grounds Management Association (GMA), Geoff Webb said, "The GMA’s priority while planning SALTEX has been to continue supporting the industry, those we work closely with, and provide regular updates along the way. In the past months, we’ve hosted regular webinars, held focus groups and conducted membership insight to help shape what’s right for our sector.

"Behind the scenes, we are working to monitor latest government guidance and safety measures to run the best event possible.

"This is where we need your help. By completing our short visitor survey, we can ensure that SALTEX is the event the industry needs to unite and celebrate the grounds sector."

The survey which can be taken here, includes the question, "If SALTEX were to be held in November 2021, would you plan on visiting the show?". It also asks for opinions on whether visitors would prefer indoor, outdoor or virtual events and which month would be preferred for a trade show.

According to figures released by the AEA registrations of agricultural tractors (over 50hp) returned to year-on-year growth in September, for the first time since February and only the second time in 12 months.

The monthly total of 1,187 machines, was 18% up on the same month last year.

Stephen Howarth, agricultural economist at the AEA explained the upturn in the month saying, "Some of this may be due to manufacturers working through a backlog of orders which built up while factories were closed earlier in the year. However, there have been signs that the machinery market has picked up over the summer, so much of the increase will be due to these improving conditions."

The total for the year to date is now up to 7,870, 22% behind the same point in 2019.

Etesia has announced that their dealer network has continued to grow with Sharrocks expanding their offering and Powercut joining the family.

Sharrocks was first appointed as an Etesia dealer in 2017, expanding its area last year. This second expansion now sees Sharrocks supplying the full range of Etesia and Pellenc equipment to the areas of Birmingham, Shropshire, Staffordshire, Merseyside, Greater Manchester, Cheshire, Lancashire, and West, East and North Yorkshire.

Commenting on the company’s second expansion in three years, managing director James Sharrock said, “It has been a very busy year and the Etesia and Pellenc sales have increased substantially - as such, our areas have also increased. Both brands have been an exceptionally good fit for us.

“Local authorities and contractors have been the largest growth areas. In addition, there has been more of a demand for Etesia in the domestic market with many choosing Etesia models to help maintain their gardens. We’ve also seen strong growth in Pellenc as groundscare companies look to move away from petrol. 

“This expansion is part of our continued growth and we are glad to be associated with companies like Etesia and Pellenc, who have the same shared vision of the future as us.”

The Etesia dealer network also continues to grow with Powercut, based in Cwmffrwd, Carmarthen, announced as a new dealer for the full range of their pedestrian mowers.

Sean Brown, commercial equipment specialist, said, “A manufacturer we were working with pulled out of the pedestrian mower market and we were looking for something to fill the void. Etesia was always our main competitor in the commercial mower market so we knew the brand very well indeed. From a business point of view, it made complete sense and we are pleased to be working with Etesia.”

The full range of Etesia pedestrian mowers are now available from Powercut with immediate effect.

Somerset-based, agricultural machinery firm, Tibbs Machinery Solutions has expanded their enterprise taking on new precision agriculture franchise, Garford Farm Machinery.

Richard Tibbs getting hands on with Garford Farm Machinery kit

The family run company, which also provides specialist installations, machinery service and specialises in precision farming products say they are looking forward to expanding their product line.

Richard Tibbs, managing director said of the new venture, "It’s exciting to be adding British made Garford machinery to our business, increasing our focus on precision agriculture”.

Lincolnshire based, Garford Farm Machinery, manufacture precision technology for the agricultural sector, offering a range of weed control machinery solutions. Tibbs will be the first dealer in Cornwall, Devon, Dorset, Somerset and Wiltshire to offer their products.

Richard adds, "With the drive towards reduced use of chemicals and more efficient systems, we are proud to be able to provide progressive farmers with practical, affordable solutions to help their businesses evolve and be competitive".

Claydon Drills has added to its UK distribution network by appointing a dealer to handle their full range in North Yorkshire.

Brockhills of Yorkshire Limited, based in Dalton near Thirsk, will sell, service and support Claydon products throughout an area based along the A1 corridor. Its sales territory borders those of recently appointed Claydon dealer Robert D Webster Limited as well as existing dealers J Wood & Son Limited and Rickerby Limited.

“We are a very customer-focussed business and operate a 24/7 on-call service from the start of the potato planting season right through to the end of maize harvesting in November. This allows our customers to contact us at any time and be guaranteed of a fast, personal response,” Peter Swales, Brockhills managing director said.

“Taking on the Claydon franchise is the culmination of a two-pronged vision. Existing Claydon owners in our area encouraged us to consider it because Claydon was changing from direct sales to a dealer network. Other customers have been encouraging us to offer tine drills since the wet autumn of 2019 when disc-type units proved problematic and the consensus was in favour of the Claydon System. The uncertainty over Brexit and future of the Basic Payment Scheme has also made farmers focus more intently on reducing their production costs. As our customers change and adapt so, as dealers, we must do the same.

“I and my team have been impressed by every aspect of our dealings with Claydon and the enthusiasm shown by Jeff, Spencer, and Oliver Claydon, together with that of their colleagues. That gives me great confidence in the future success of this relationship.”

Gordon Law has just celebrated his golden 50th anniversary at dealers Ernest Doe & Sons Limited.

Gordon Law

Gordon’s career began at the age of 16 following the sad passing of his father. Mr Law Senior had worked for William Batty, latterly Sir William, the managing director (and subsequently chairman) of Ford in Britain, who took it upon himself to help Gordon find a job. However, he was forced to look outside the business following Gordon’s unsuccessful attempt to get into the demonstration team at Ford and ‘not liking the look of the factory’.

With strong links between Ford and Ernest Doe & Sons, Sir William, known to the Doe family as Bill, had a good relationship with Alan Doe and sent Gordon to meet him at Ulting. Shortly after, on 21st September 1970, Gordon joined the company as a Parts apprentice at Fyfield Branch.

Gordon became a senior partsman at Fyfield under Dick Legg. Dick became branch manager at Braintree and Gordon joined him at the branch as parts manager.

When the business of Colchester Tractors was purchased by Ernest Doe, the company needed a knowledgeable person who knew the Doe systems to be parts manager, hence Gordon took this position. Gordon made his final move in 1996 when he moved to the purchase office to become the company’s parts stock controller.

When asked about a highlight of his career at Ernest Doe, Gordon mentions his time at the Colchester branch as the parts manager. He remarked that he "had a cracking good team" and it is no coincidence, say Ernest Doe, that during Gordon’s tenure at Colchester, this was the only time any branch parts department has ever beaten the Ulting parts department sales figures.

Last week Gordon was presented with a cake commissioned by his fellow purchase office team members and topped off with a sugar craft version of his favourite tractor. Despite the current restrictions, Gordon managed a Covid-compliant full week of celebrations at work, seeing friends and colleagues from across the business in small, socially distanced numbers.

The week was topped off last Friday when the directors and general managers raised a glass with Gordon in the board room and presented him with a limited edition Triple-D print and a garden bench.

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