Today's is the first edition of our Weekly Update in a while where we are not featuring news about a dealership collapsing. For the previous three issues we've unfortunately had to include reports on the demise on Suffolk Agri Centre, Balgownie and Collings Brothers.
And we might not be out of the woods yet. I will say we are hearing some further concerning, but unconfirmed, rumblings about other dealerships that are apparently finding themselves in potentially perilous situations this spring. It's a developing situation that we shall continue to monitor, hoping that matters can be resolved with no further closures. But I'll be honest, I'm not holding my breath.
Of the many differing issues that will be causing serious headaches for our dealer readers across the agricultural, commercial and domestic machinery spectrums so far in 2024, there will be one that's common for all. Our old frenemy the weather.
This perennial is a subject that cannot ever be far from the thoughts and conversations of dealers and manufacturers alike. And frankly, of course, one that nothing can be done to control.
But it still must said; goodness me it's been ruddy wet lately!
Which is no laughing matter. There was quite a dramatic article in The Guardian this week that caught my eye, entitled Farmers warn ‘crisis is building’ as record rainfall drastically reduces UK food production. It laid out in stark terms how the "record-breaking rain" we have all experienced lately, has "drastically reduced" the amount of food produced in the UK. It explained how this will lead to a reliance on imports for the country and subsequently how this will hit consumers in the pocket.
What it will also mean for our sector, is direct, knock-on effects experienced by ag machinery dealers. A few weeks ago the AEA in their monthly report on UK tractor registrations, spoke of the "relatively slow start to the year" and how we should have a better picture of the situation so far in 2024 once figures for March, typically the peak month each year, are available. Well we have those today and they are . . . not terrible?
Agricultural economist at the Association, Stephen Howarth, tells us figures seen in March were 13% lower than the exceptionally high figure recorded in the same month last year, but goes on to confirm that it's 4% above the average for the time of year across the previous five years.
Stephen says, "The latest figures suggest that, while demand is clearly not as strong as it was in the previous couple of years, there are still plenty of buyers out there for tractors." Which is something positive to hold on to.
In terms of professional end-users, I know my esteemed colleague, Laurence Gale, editor of our sister title TurfPro who has his ear to the commercial groundstafff sector, is saying that these prolonged periods of extreme wet weather are preventing the guys and girls from getting out on to their surfaces and getting on with the maintenance tasks they'd ideally like to at this time of year. The domestic cricket season bowled off for example this week, with squares around the country still saturated.
As as for dealers of domestic machinery, summing up the situation I've seen memes being shared around showing divers in full scuba gear, plunging underwater to check if their lawn needs mowing yet! It's clearly not exactly those perfect spring conditions that all hope for each year.
However, I suppose one argument to all this is, it's the weather! It will change soon enough. The grass will grow and farmers, turf professionals and homeowners will have tasks to complete, for which they will need the services of specialist dealers. It's the same every year.
But is there that nagging feeling that patterns are changing to a worrying degree? And if so, what does this mean for the dealer network going forward?
If you have any thoughts on the subject that you'd like to share, we'd love to hear them. Please let us know in the comments below.
