It's a depressing count, but it has now been four out of the last five issues of our Weekly Update where we've reported on the failure of another independent outdoor powered machinery dealer.

And the truth of the matter is there are at least a further two companies that we have been hearing strong rumours about, regarding their ability to also continue trading.

So at the risk of repeating myself I feel I need to ask you once again, our expert dealer readers, what is it with the start of this year that is leading to these closures? Is there a particular factor, or perhaps more likely, combination of factors that you are concerned about so far in 2024 that may be at play here? Or is it simply the normal progression of the season, which will unfortunately always see a number of casualties? 

Significantly I feel, what we must bear in mind is that these haven't been brand-new start-ups, finding their feet in their local communities and the wider industry. No, these have all been established companies, presumably with customer-bases and a known reputation. This arguably makes what has happened to these dealerships all the more concerning.

Hearing today from owner of Ayre Mowers, Andy Brew, who we thank for his openness, he cites various pressures that impacted his business including manufacturer winter stocking commitments, a post-pandemic lack of footfall with customers relying ever more on the internet and increased costs of both importing to the Isle of Man as well as rent. A perfect storm of financial difficulties.

This ties in to what some have been saying as to why we have been seeing dealerships go under this spring. It's an element that is fundamental to any business, regardless of industry - cashflow. This school of thought says it's the nature of competitive businesses that some companies will always find themselves struggling due to their financial commitments, shrinking margins and a poor return on investment. There will inevitably be a churn of businesses impacted by cashflow issues meaning, sadly, each season some will succumb. 

Thinking about other trends in the sector that may have a bearing on these events in general, some will attest that moves by certain major manufacturers to consolidate their networks into fewer, larger dealer groups must shoulder some blame. Dealers who find themselves without a major brand to represent, now selling a lesser-known, smaller marque, might struggle to convince customers that they want to change the machinery-make they use - therefore they lose trade to the so-called super-dealer up the road. Some customers will simply be loyal to their favoured brand rather than their nearest dealer. This theory could apply equally to farmers, commercial end-users or discerning homeowners.

Listening to grass machinery dealers, we will often hear the cheapest-end of the marketplace come in for criticism. The frequent race to the bottom on prices seen online, with particular retailers offering crazy discounts, skews the average customer's perception of what goods are actually worth, adversely affecting the sector as a whole. Even though we have a real-life case study to reference, proving that this approach is unsustainable (hello FR Jones) it does unfortunately still appear to be taking place. And presumably taking business away from legitimate dealers.

The other bête noire for some grass machinery dealers of course is warranty rates - where feelings can run high regarding what's seen as inadequate compensation for work undertaken.

Regarding customers, reader John Sandys posted a comment on here a few weeks back, with another interesting theory as to why some dealers are struggling. His thought was that there are actually too many dealers for the available customer base. He wrote, "Unfortunately, in agriculture, there are less and less customers, so less custom to go round for the dealers." Similar to how we now find ourselves with mega dealer groups, we're also in an age of mega farming groups. John explained, "Where the minor brands are losing out, is that it is the smaller farmers, that might have been more loyal to a local dealer, who are disappearing." If there's no one to sell to locally, what hope does an independent dealer have?!

So what are we putting this spate (I think we can use the word spate now) of closures down to? It is a blip or something more? As well as feeling sympathy for those who have lost their jobs, have these events shaken your confidence? What are you doing to make sure it doesn't happen to your dealership?

We'd love to hear your thoughts today, because let's face it, no one will know more about the circumstances out there so far this year, than our dealer readers at the sharp end.

Please leave your comments below or feel free to drop me line if you'd prefer to remain anonymous. 

Two more companies who will be supporting November's Service Dealer Conference & Awards have been revealed.

They are:

Kubota UK who are returning as a Gold Sponsor

And STIHL GB who are also returning as a Gold Sponsor.

Service Dealer owner Duncan Murray-Clarke said, "We are tremendously excited how this year's Conference is taking shape, with some incredibly valuable and topical content lined up - all for the benefit of our dealer delegates.

"On top of that, it's a real pleasure today to welcome back two great supporters of our event, who we thank for their continued enthusiasm - Kubota UK and STIHL GB."

Rob Edwards, marketing manager of Kubota UK, said, “Kubota are delighted to be continuing their Gold sponsorship of the Service Dealer Conference and Awards.  

"The conference themes, its speakers and its workshops always offer up new and provocative insights to how we can drive our industry forwards. It's also a great opportunity to network, and importantly allows the industry to celebrate and award staff and dealer excellence”.

Simon Hewitt, STIHL GB head of marketing said, "We are excited to be sponsoring the Service Dealer Awards once again in 2024.  

"Last year, it was a really great opportunity to spend time with some of our biggest customers and we look forward to returning to this major industry event this year.”

The theme for this year's Service Dealer Conference has been announced as Driving Success and it will take place, along with the Dealer Of The Year Awards, once again at the Crowne Plaza, Stratford-Upon-Avon on Thursday 28th November 2024.

For more information on how you can be a part of the event and to stay updated on conference news visit our website or follow us on social media @servicedealer

Suzuki GB has announced a change to the management support team for its ATV products and national network of authorised dealers.

James Tonks (above left) has been promoted to sales manager for both the company's ATV and Marine product groups and steps up to replace the long-serving Harvey Day (above right), who is retiring after 21 years.

Joining in 2003 as an area sales manager, Suzuki says Harvey has been an integral part of their success and growth in the agricultural and land management industries. Indeed, in recent years, he has overseen product planning for both their ATV and Marine product portfolios.

Harvey’s retirement has paved the way for the promotion of James Tonks, who has been with Suzuki since starting on the sales desk in 2019. He then moved into an account manager role in October 2020 and in that time, they say he has built up an excellent rapport with their dealers throughout the UK.

Commenting on his time at Suzuki, Harvey said, “I can’t quite work out where the last 21 years have gone. It’s been an absolute pleasure working for the best company in the industry and I would like to thank all of my customers past and present for their support. We’ve had some real fun.”

James Tonks said, “I am super-excited about my new role, and I couldn’t have asked for a better handover from Harvey. He is one of the nicest and most knowledgeable people I have ever met, and I wish him well for his retirement.”

Mark Beeley, head of ATV and Marine for Suzuki GB, added, “Although we are very sad to see Harvey go, this is a positive change, and I am sure James will do brilliantly in this new role. I would also like to pay tribute to Harvey’s contribution to Suzuki over the last 21 years, which has been fantastic. He will always be part of our team, but I hope he can now enjoy more time on the golf course!”

Last week we reported how the AEA had released figures that showed UK agricultural tractor registrations in the opening three months of 2024 were 14% lower than in the same period last year.

The Association has new revealed how trends varied across the country and between different power bands between January and March 2024.

Figures show how there were fewer tractors registered in the opening three months of this year than in same period of 2023 across the whole of the UK. Agricultural economist at the AEA, Stephen Howarth, said, "The sharpest declines were in the South and West of England, with a 29% drop in the South West particularly significant, as this region registers the second largest number of tractors. Smaller drops were recorded in the Eastern half of England and in Scotland (-10%), Wales (-4%) and Northern Ireland (-1%)."

In terms of analysis of registrations of tractors by engine power, figures show that there was some growth for the largest machines. "The number of tractors over 240hp registered was up by nearly 40%, compared with the first quarter of 2023," confirmed Stephen. "These machines accounted for 14% of registrations this year, up from just 9% a year ago. Below this level (but over 50hp), there were nearly 20% fewer tractors registered, with a similar rate of decline across most broad power bands."

Last Tuesday I attended a machinery demo day organised by Iain Courage of Fleet Line Markers LTD at The Pavilion Moor Lane, Birmingham, a sports ground belonging to Birmingham City University. 

 
With over 100 people listed as attending and with 20 plus companies exhibiting at the demo day, I was looking forward to seeing a plethora of demonstrations and catching up with many of the exhibitors.

However, no one could have expected the weather to be so awful, with strong biting cold winds and torrential rain, which unfortunately prevented many of the attendees making the most of the event.

Many including me, arrived to a nice warm cup of tea or coffee and a hot breakfast bap and waited for the storm to abate, before venturing out to see the wealth of machinery on display.  

On show was vast range of equipment and machinery from the likes of Dennis, Campey, STIHL, Allett, Fleet, EGO, Etesia/ Pellenc, Trimax  Iseki and Overton to name a few. I took the opportunity to talk to a number of exhibitors and attendees. 

I spoke to Guy Overton about his popular Mean Green battery powered machines which are proving to be a popular choice with local authorities and schools. The mowers can run for seven hours on one full charge and are quiet when in use.  

I also spoke to Gareth Fowler-Simons of Lakeside Grounds Maintenance who owns and runs his successful midlands contracting company. He said the recent bout of wet weather was certainly affecting many contractors and delaying much of the planned end of season works.

I also bumped into Ian Collington from Etesia who had brought with him a range of Pellenc battery powered equipment. Ian has been with Etesia for over 20 years and still enjoys his job travelling around the country demonstrating machinery. He, like many I spoke to at the event, were talking about the relentless wet weather we have been having and how it was affecting their work. 

All the exhibitors must be commended on their commitment to supporting events like this. I am sure if the weather had been kind it would have been a successful day for all involved.  

TR Machinery, sister company to RVW Pugh, have announced that they have joined the dealer network for AVR, manufacturers of a full range of potato machinery. 

AVR is Belgian company that has been manufacturing potato bedding preparation, planting and ridging to haulm topping, harvesting and storing machinery for over 50 years. The manufacturer has a range of soil cultivators to suit different needs, including a multifunctional, a hook tine, a combi machine and a compact rear cultivator. 

Martyn Gardner, sales director for TR Machinery said, "We are delighted to be part of the AVR dealer network and to be able to bring these innovative machines to the potato farmers of the west of the UK. I’m sure these machines will help with productivity and efficiency throughout the potato growing and harvesting seasons." 

AGCO and Trimble have announced the completion of their joint venture known as PTx Trimble.

It combines Trimble’s precision agriculture business and AGCO’s JCA Technologies to form a new company that will factory fit and retrofit precision technology.

AGCO has acquired an 85% stake in PTx Trimble, and Trimble will hold a 15% stake. Going forward, the PTx Trimble JV will be consolidated into AGCO’s financial statements.

Eric Hansotia, AGCO’s chairman, president and CEO said, “Farmers worldwide need technologies that support them to be more productive and profitable while minimising the environmental impact of their operations. PTx Trimble will provide farmers greater access to next-generation precision ag tools, no matter what brands of tractors and implements they operate.”

AGCO says the formation of PTx Trimble enhances their technology offering around guidance, autonomy, precision spraying, connected farming, data management and sustainability. 

“Rob Painter, Trimble's president and CEO, added, “By combining our expertise and resources through this JV, we aim to accelerate the pace of innovation. With a focus on open technologies, customers will benefit from tech solutions available to farmers across a broad range of tractor and implement brands.” 

STIHL has introduced a host of new service packages, which cover 99% of current STIHL battery and petrol models, providing its STIHL Approved Dealer Network with an enhanced way of servicing STIHL machines to the highest standard. 

Available for free in STIHL’s parts look-up system, the new packages consist of a comprehensive tick list of servicing tasks unique to each model and add value by generating a summary PDF to provide the customer. Service packages for iMOW and AP System models were launched in May 2023 and, following great feedback, the packages are now available for 99% of current battery and petrol STIHL machines, as well as 95% of machines introduced since 1980.

Thanks to the pre-defined scope of servicing tasks, the implementation into the existing parts system and the automatic generation of the summary PDF, service packages are a highly efficient way of improving existing workshop processes.

By providing marketing materials for dealerships to display in-store, STIHL hope to increase awareness of service offerings and make servicing more appealing to domestic and professional customers alike. A tiered system of packages, ranging from ‘safety check’ through to ‘pro inspection’, provides dealers with upselling opportunities and allows customers to customise their requirements with optional services.

STIHL Approved Dealers can access service packages for free in the SSC parts look-up system. 

For more information on STIHL products and service packages, STIHL Approved Dealers can contact their STIHL account manager. 

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Handy Customer - To place your order, please get in touch with Handy’s Sales Team via email: Sales@handys.co.uk or call: 01793 333220  

About Handy 

Since 1938 Handy has grown to become one of the UK’s largest independent garden machinery wholesale distributors and manufacturers, supplying specialist dealers, large national retailers, garden centres and mail order companies, from its purpose-built 70,000ft Swindon site which is home to more than 45 full-time staff.

Handy has developed some of the UK’s leading machinery brands including Webb, The Handy and Q Garden. These distinct brands stand as a testament to the company’s creative and manufacturing prowess.

As the UK-appointed distributor for the Greenworks brand cordless equipment, Handy is at the forefront of leading battery technology offering a full complement of cordless equipment.

To this day, Handy remains a family-owned British business.  Its experience, expert knowledge and dedicated customer service – which includes carrying over 10,000 spare part lines - have enabled it to build a team driven by high performance and family values. 

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