Outdoor Power Equipment

January 2014

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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2. What were the OPE industry's biggest stories of 2013, and what will make headlines in 2014? Bob Walker: I don't know if this should be classified as the biggest story of 2013, but to me, it was significant to mark the passing of two pioneers in the OPE industry. I would like to honor the memory of Dane Scag (founder of Bob-Cat, Scag Power Equipment and Great Dane Power Equipment) and Dick Tegtmeier (co-founder of Exmark and founder of Encore) as two who made significant contributions to the design and manufacturing of commercial-grade lawn mowers. I am not sure what will make the headlines for our industry in 2014. BOB WALKER PRESIDENT WALKER MFG. CO. (FORT COLLINS, COLO.) 1. What does your company or organization have planned for 2014? Bob Walker: For our dealers, we will continue to offer the "Out Front Advantage Sales Training" (OFAST) that was started in the 2013 season.This is a two-day "boot camp" held at our factory outdoor training facility with eight classes of 20 dealer sales personnel in each class. We had great response from the dealers that attended in 2013, and the increased sales that occurred afterward confirmed the effectiveness. Product development continues to be a strong emphasis with the introduction of two models that are significantly redesigned from earlier models.We are planning to make a mid-year introduction of our next-generation grass-handling model, which is a completely new design offering great performance and a new lower price point. Walker continues our single "sales with service" channel of marketing with dealer-only sales. Walker continues to be a family-owned and familymanaged company with the third-generation Walker family members now at work in the company. The trend will continue for more commercial mowers to be offered with electronic fuel injection engines. 3. What will be the OPE industry's top trends in 2014? Bob Walker: The trend will continue for more commercial mowers to be offered with electronic fuel injection engines. In the next few years, it can be predicted that engines with carburetors will no longer be used in commercial mowers. Also, the trend will continue to grow for online sales of spare parts, both OEM and aftermarket. 4. Aside from the weather, what challenges will OPE dealers face in 2014, and how should they address them? Bob Walker: As noted in my previous response, we think dealers will be challenged to maintain their share of spare parts sales due to the convenience and increasing popularity of ordering online. The way for a dealer to meet this challenge, taking a page from Bob Clements (consultant to OPE dealers) counsel, is for dealers to "have good prices and have everything the customer needs." Dealers still have the advantage if they are able to offer a high level of customer service. A dealer never wants to say, "We can order that for you." As a manufacturer, Walker has no plans to participate in online sales, as we are committed to supporting our dealer program, but that does not stop some enterprising dealers from selling OEM parts online. 5. What is your overall outlook for the OPE industry in 2014? Bob Walker: We expect to see a 5- to 10percent increase in sales in 2014 and think the industry as a whole will continue to experience modest single- or low double-digit growth. JOHN HEDGES DIRECTOR OF SALES & MARKETING CENTRAL POWER DISTRIBUTORS, INC. (CPD) (ANOKA, MINN.) 1. What does your company or organization have planned for 2014? John Hedges: The industry has seemed to stabilize for the moment with regards to EPA (Environmental Protection Agency), CARB (California Air Resources Board), mergers, acquisitions and companies going out of business. I bring that up because CARB and EPA have dictated the industry for the last 5 years (at least). Having Kohler, MTD, Lauson and LCT engines, this is good news for CPD. Our suppliers have done a great job keeping up on the regulations, and this is allowing us to grow in our market area. Obviously, these two entities are still creating regulations, but for the time being, we all know what is expected for a few years. We will offer a couple of new product lines in 2014 that will help us in markets we aren't active with today. This will allow us to develop relationships and sell other items we carry to the new customers. CPD has a business model that is working, and we will continue to develop that.There is one OEM line that has been on our radar for a few years, and we hope 2014 is the year we can begin marketing their products and parts. 2. What were the OPE industry's biggest stories of 2013, and what will make headlines in 2014? John Hedges: Having a late spring and being able to recover was a big story in OUTDOOR POWER EQUIPMENT JANUARY 2014 15

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