Outdoor Power Equipment

February 2013

Proudly serving the industry for which it was named for more than 50 years, Outdoor Power Equipment provides dealers who sell and service outdoor power equipment with valuable information to succeed in a competitive market.

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Industry ForEcasts present themselves.The other benefit of lean is an energized team and increased morale at PES. As we work together on lean initiatives, using cross-functional teams, we are relying on the employees as the experts, and they are more engaged.We are also focused on aggressive growth with key business partners.We are proactively working on new solutions for OPE manufacturers and dealers who want to increase their market share and profitability in the western United States. With respect to OPEESA, in 2013 our goal is to deliver even more value to our members. Today, we provide tracking and benchmark opportunities through various monthly, quarterly and annual reporting for all segments of our membership.The OPEESA annual meeting in Florida will provide networking opportunities, and our speakers will provide tangible and implementable take-aways.We will also continue our member round-table discussions, which allow members to glean best practices on a wide range of topics. Another exciting offering at OPEESA is our young professional/emerging leaders group.This group is made up of the leaders of tomorrow for the OPE industry; it is very exciting to see the enthusiasm and insight this group brings to the industry. Overall, OPESSA is a thriving organization, thanks to our dedicated and growing member base and the leadership of our Executive Director Nancy Cueroni. 2. What was the OPE industry's top story in 2012, and what will it be in 2013? PY: The top story for 2012 seemed to be the weather. Being in the Northwest, we were sheltered from the drought conditions that most of the country felt. But, we had the wettest spring on record.The lack of a good snow season didn't help either. Looking in the crystal ball for 2013, I think the top story is going to be a better economic environment. If the "experts" are to be believed, we will see positive trends across most all economic indicators. 3. How will the outcome of the recent federal elections impact OPE dealers and the rest of the industry? PY: While there is still uncertainty on tax and healthcare issues, we do believe that the new Congress and the President will make decisions. We might not agree with all of them, but at least businesses can make plans if they know what to expect.With many new Cabinet members, it is also anticipated that there will be other regulations that will impact the OPE industry.We will definitely need to remain diligent and pay attention to what goes on in Washington. 4. What are your biggest concerns about the OPE industry, and how should they be addressed? PY: A shrinking dealer base and a shrinking pool of trained technicians to service equipment remain long-term concerns. Unfortunately, 22 there is not a magic bullet for either of those issues. As an industry, we need to maintain dealer margins while providing more support to help them grow their business. If we want to keep a good level of dealers, we need to work toward keeping it an attractive business proposition. As far as technicians, if we can help dealers make their service departments profitable, it should help them to retain and recruit good technicians. In addition, we need to promote the industry with the next generation. Supporting vocational schools with product and resources is a great start. 5. What will be the top trends in the OPE industry in 2013? PY: I think we will see more manufacturers focused on their parts business.We are seeing an increase of new incentives and measurements of service parts with manufacturers.The competition between OEM and aftermarket will get even more competitive in 2013. 6. What is your overall outlook for the OPE industry in 2013? PY: I feel the industry is poised for growth in 2013. Economic conditions will be better. End users will have more cash on hand and more credit available.This, combined with existing pent-up demand for new equipment, should mean a strong year in 2013. Of course, unfavorable weather conditions trumps everything. 7. What advice do you have for OPE dealers? PY: There is opportunity for dealers to increase their success by looking at their distributors as business partners and not just suppliers.There is an opportunity for more synergy between dealers and distributors. Dealers should ask for, and utilize, distributor resources to help grow their lawn and garden business. ERIK SIDES EXECUTIVE DIRECTOR EQUIPMENT & ENGINE TRAINING COUNCIL (EETC) (YORK, S.C.) 1. What should OPE dealers know about your company/organization heading into 2013? Erik Sides (ES): The lack of qualified OPE technicians is rapidly increasing as Baby Boomers retire. OUTDOOR POWER EQUIPMENT The EETC is working to increase the number of vocational-technical schools and colleges with EETC-accredited programs. Our technician certification program helps ensure new and existing service technicians have the basic knowledge needed to efficiently repair outdoor power equipment. In 2013, we will launch several improved processes, including online certification testing and streamlined order fulfillment and billing. 2. What was the OPE industry's top story in 2012, and what will it be in 2013? ES: The economy and effect of the weather on our industry. Economic activity is improving in the USA, but still negative in Europe and other parts of the world. 3. How will the outcome of the recent federal elections impact OPE dealers and the rest of the industry? ES: If the new Congress acts in the interest of the country instead of self interest, we will be OK. The biggest concern, I think, could be what the final cost of the new healthcare plan will really be and how it will impact the economy, OPE distributors, dealers and other small businesses. 4. What are your biggest concerns about the OPE industry, and how should they be addressed? ES: Concerns — The loss of skilled technicians and dealerships due to retirements/poor economy; emissions, E15 ethanol & other alternative fuels. How to address issues: Retirements issue — As the new executive director of the EETC, I will aggressively seek to increase the number of EETC-accredited programs across the USA and Canada, as well as increase the number of certification areas and renewals among the existing group of service technicians. Emissions/fuels issues — Make sure our voice is heard in Washington through OPEI, NMMA and other concerned organizations. 5. What will be the top trends in the OPE industry in 2013? ES: I believe that you will see more technology being used, and experimented with, to help reduce cost, protect the environment, and improve product functionality and reliability. 6. What is your overall outlook for the OPE industry in 2013? ES: I believe we will see continued improvement in USA/Canada markets, barring severe weather. 7. What advice do you have for OPE dealers? ES: A few things: 1) Have a business plan for the next three years, and review and update it every year. www.outdoorpowerequipment.com

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