Following on from our conversations we held with manufacturers and with dealers over the past couple of weeks, it's clear the most significant threat to the industry right now is regarding stock levels.

This time a year ago, with the world shutting down, it was quite different concerns businesses were facing. It felt more fundamental. Quite simply, how can trade continue under such extraordinary circumstances? What we're going through now, somehow feels more complex.

As the months ticked by last year, safe and revised methods of trading were found - eventually resulting in many dealerships experiencing what could be described as a bumper year of sales. With homeowners focused on their gardens, agriculture never stopping working, and the commercial sector eventually coming back on stream, machinery shifted through dealerships.

However, to mix metaphors, the elephant in the room was always kicking a can down the road into the long grass!

With factories shut for prolonged periods of time around the world, stockpiles of available machines were always going to be depleted when consumer demand was so high. Some of those factories, either for wholegoods, or crucially for components, have probably faced multiple re-openings and further shutdowns throughout the past 12 months. As one of our dealer panel said, these manufacturing lines have never had the opportunity to fully catch up with the production that has been missed.

Add into that Brexit, a logistics industry crisis, shipping container shortages and now a learner driver attempting a three-point turn in the Suez Canal and you have the perfect storm of a situation.

One can only hope that dealers have been able to build some fat into the business following bumper 2020 sales, because it certainly seems like these next few months are going to pinch.

Lead times extending

I was talking to the sales director of a large dealership this week, who sell into horticulture, ground care, agriculture and construction too.

They told me that some of their construction machinery clients are actually placing orders now for equipment that they have accepted they won't take delivery of until January or February 2022! The buyers in that sector have seemingly come to terms with the reality of those lead times. As that sector plans so far ahead with projects, there's an understanding that's how the world is working currently. I must admit I was quite shocked.

I'm not sure how many of our readers, faced with a customer who has just pulled their non-working mower out of the shed in time for the Easter get-togethers, would be comfortable telling them they can buy something new today and receive it after Christmas? There'd be some interesting reactions no doubt.

As we've said before, it's a problem not exclusive to our sectors, or indeed to our country. I interviewed the head of the U.S trade association, Kris Kiser, recently, for a feature in an upcoming issue of Service Dealer magazine, and I asked him how it was for dealers over there?

"We have the exact same problem,” confirmed Kris. “Significant parts shortages. Significant interruptions in transportation and delivery. Very real challenges. Most manufacturers are producing, it’s getting product out which is hard.

"So, yes, we’re having the same problems as you guys. And this weather we’ve had here has added to the interruptions.”

Whilst it doesn't exactly help, it is a fact that it's a worldwide problem right now. Sara Hey and Bob Clements, of the American dealer training organisation Bob Clements International, released a video this week in fact, talking about how they are working with their dealers to address the situation.

And of course it's been something we have been discussing with our panels since the start of the year. Last week the latest module of the Service Dealer Digital Toolkit went fully live, which has been designed by TAP and shaped by leading dealers, to address these type of issues directly.

We urge all readers to take a look at the Toolkit as there could well be that one nugget in there, that inspires some new thinking. As Service Dealer owner, Duncan Murray-Clarke, says, “Our new Dealer Toolkit module aims to give you the tools needed to adapt and futureproof your business."

How is your dealership impacted?

What would be of great value to us today, would be to hear from as many of our readers as possible about how this issue of stocking is affecting your dealerships right now - and what you foresee going forward? 

How are you coping? Do you have your methods to ride out the storm? Are you able to manage both customer and staff expectations?

We are running a short survey today with a few brief questions and a space for you to leave your comments, which we'd really appreciate your feedback on.

As ever, we shall publish the results and a selection of your thoughts in the next issue of Service Dealer magazine.

TAKE THE SURVEY