It wasn’t the news that AEA and BAGMA had joined forces that was the most surprising aspect of the recent announcement – it was the fact that the manufacturers trade association had bought the organisation representing the interests of sales and service dealers.

 

Such a 'merger' had been mooted for many years. In a fascinating catch up with former BAGMA Director General Jonathan Swift for my Inside Agri-Turf podcast this week, he revealed that the subject had often been discussed over Sunday lunch with his father, Dean Swift, during the time Jonathan was running BAGMA – and his father was Director General of the AEA!

 

It was Jonathan who was responsible for moving BAGMA from its independent status in 1994 into the BHF Group (now BIRA) after he had become Director General of the British Hardware Federation after leaving BAGMA in 1986.

 

In the early 1990s, BAGMA had run into administrative and financial difficulties partly as a result of an ill-fated move to run its own turfcare show at Kempton Park in 1990 in direct competition to the IOG Show (now GMA) which had relocated to Peterborough.

 

BAGMA has been under the wing of BHF/BIRA for 27 years until the AEA came on the scene. During this time it was able to offer its members a valuable portfolio of benefits including preferential finance deals and legal advice, that it would have been unlikely to have negotiated as a small independent association.

 

I am somewhat surprised that the ‘merger’ hasn’t received more comment - at least publicly in industry forums. Perhaps the timing of the announcement had something to do with this sporting summer bonanza - or perhaps it is that the industry has changed from the days when trade associations were part business, part social in equal measure.

 

There has also been a distinct blurring of the role of manufacturer and dealer.

 

Manufacturers now set up sales and service operations (eg Reesink) whilst many dealers have become importers and distributors of machinery and equipment.

 

That’s the world we live in, but imagine the difficulty and awkwardness in the AEA camp should a leading manufacturer - and member of AEA - decide to cut out its dealer network and go direct.

 

Fair and equitable dealer contracts were a thorny issue back in Jonathan Swift’s days – and remain so as the consolidation of  global manufacturers and suppliers continues apace.

 

 

These and other issues will raise their head and need to be addressed. But it is clear that the bigger picture, that of representing the industry as a whole, particularly in the corridors of power, is enhanced by strength in numbers.

 

AEA and BAGMA have always worked closely together, none more so than recently when presenting the industry case at a time of Government imposed restrictions during the pandemic.

 

Governments need trade associations in order to assess the impact on every sector of business, and trade associations themselves must be able to communicate the decisions and interpretation of rulings back to the industry in a clear and unambiguous manner.

 

In my podcast conversation last week with Ruth Bailey, CEO of AEA and Keith Christian of BAGMA , they put a very positive case for togetherness, saying that there will be clear demarcation between the two associations. They will retain the current officers positions and offer exclusive benefits to their respective members.

 

It is early days, the ink on the deal is hardly dry. There has been no real indication on the reason for splitting from BIRA. Who wanted who gone – or indeed the financial terms? I understand AEA paid BIRA for BAGMA out of its cash reserves. 

 

In many respects this is a sensible move for two relatively small associations, both with a long heritage, to combine their resources in these changing and challenging times.

 

However, perception is everything.  The fact that AEA now owns BAGMA will raise question marks.  Jonathan Swift says there should be clear and transparent parity. “They should be like the G7 of the industry, sitting round as equal partners”

 

I would agree. The danger may be that if the combined association is seen to be 'singing from the same hymn sheet', that may open the door for a new dealer exclusive grouping to be established.

 

And so the wheel would turn. 

 

LISTEN to podcast featuring Jonathan Swift

 

LISTEN to podcast featuring Ruth Bailey (AEA) and Keith Christian (BAGMA)