Service Dealer held another of our video calls with senior representatives of manufacturers, business service suppliers and trade associations on Wednesday this week.

Once again it was a fantastic opportunity for us to take the current temperature of the industry and we thank all those who took part for their time, candour and insight.

There were two topics that loomed large over the conversation. These were the ongoing difficulties surrounding stock levels and the continuing debate over what the trade show outlook will be for this year and beyond.

After the call, Service Dealer owner, Duncan Murray-Clarke who chaired the discussion, summed up what we heard regarding exhibitions, saying, "I think it is becoming clear that manufacturers are thinking about recalibrating their show attendance in line with the modern and 'changed' marketplace. They are re-evaluating their core reasons for exhibiting. This would, I believe, make the interaction the dealers have with customers more important than ever.

"It could also potentially see a re-allocation of marketing funds to support the customer facing dealer network to, in turn, evolve their omni-channel approach."

Future of shows

Addressing this conversation being held around shows and events, I will say straight up that I'm quite aware we've discussed the subject extensively in Service Dealer lately and I'm conscious of not retreading ground already covered. However, what does seem apparent is that it's an ongoing story with internal conversations being conducted at both manufacturers and dealerships about the role shows play in the industry calendar.

Dealers in fact, will be on both sides of the decision-making process when it comes to events - making choices as to whether to attend national shows as visitors or to take a stand as an exhibitor at any local or county show that can open its gates to the public this year. We can see today that the picture is still changing with both BIGGA's Festival Of Turf and Cereals announcing changes to their dates - pushing their schedules back to the far side of the government's roadmap, where we could potentially find ourselves completely free of social distancing restrictions (if things go well).

What level of support these shows and others will receive from exhibitors and visitors remains unclear? Certainly with the new BIGGA event being an untried prospect, it's very hard to gauge. Whereas with SALTEX in November for example, many of the manufacturers we spoke to are already confirmed for that - seeing as they signed up back in 2019, following the last edition. 

The distinct impression I gained from the call though, is that these exhibitors feel they need a greater return on their investment for exhibiting than they may have seen in recent years. We were told that these events have significant costs attached, and unlike in the days of yore, hardly any new business is acquired on the exhibition floor anymore. In the modern era it's mostly an exercise in catching up with customers already known to the company - which, clearly has some value, but cannot be justified multiple times over, each and every year.

It felt to me that suppliers will be asking hard questions of 2021's show organisers. They will expect to see a quality audience delivered through the doors, plus they will be looking closely at the cost to benefit ratio.

A benefit to dealers?

If a reassessment of where this marketing spend gets allocated does occur, as Duncan suggests, there's a scenario where this could directly benefit dealers. Online research will take customers so far, but at some point tyres need to be kicked and machines assessed in the flesh - and if manufacturers don't have a presence at every show, the dealership is the natural point of contact.

It was said how this very much ties in to something we've been discussing in depth these past 12 months, that in order to satisfy today's customer, dealers must be progressive, make an effort with a modern, welcoming premises and blend that with a comprehensive digital offering. The so-called omni-channel approach that Service Dealer has been advocating in the Dealer Digital Toolkit.

The enforced stop on shows appears to have given some manufacturers genuine pause for thought over their usefulness. It would not surprise me if we begin to see some step back from attending every national event that takes place. Perhaps greater emphasis will be placed on supporting their dealers at local county shows? Certainly the adage, 'it's how we've always done it', will no longer apply to shows, just as it doesn't with the rest of our changed business landscape.

Ongoing stock level problems

Of course, if a step-change in the show landscape prompts more attention to be focused on your dealership rather than the exhibition hall, it's far from ideal to have a showroom full of empty shelves!

As such, the issues that have led to the stocking problems it seems everybody has experienced so far in 2021 were discussed again. The reasons we've heard before for the delays on deliveries of both wholegoods and parts to dealerships - Covid shutdowns; Brexit hangovers; logistics crisis - are all still in play it seems.

The manufacturers we spoke to are aware that their dealers are wanting to prepare and plan ahead, but they find themselves in the unfortunate position of not being able to give their partners definitive answers as to what will be arriving and when.

We heard anecdotes of containers of equipment expected to arrive in Southampton docks for example, end up in Rotterdam! Or of nothing turning up for days on end only, like busses, to all come at once - which causes its own set of problems.

Companies who manufacture in the UK naturally find themselves in a slightly better position, although they do of course rely on certain components to come in from abroad - which is effecting the process. We heard for example, that supply of batteries is coming under increasing pressure. 

There was an acknowledgment that whilst dealers understood the factors causing the hold ups, there is of course frustration too. No one wants to see empty shelves. When circumstances will return to a normal, cannot be predicted with any certainty.

Whilst it doesn't change anything, I will just say the situation appears similar globally. I had a conversation recently with Kris Kiser, head of the OPEI in the States, who told me American dealers are facing the exact same problems with supply right now.

As ever, the advice would be keep communications open, honest and frequent with customers. Make the most of that multi-channel approach.

In return, dealers should expect the same from their suppliers.