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Issue link: http://read.dmtmag.com/i/621618
4) What will be the OPE industry's hottest trends in 2016? Jeff Plotka: a. Technology and how it drives efficiency will continue to be the hot trend in 2016, whether it is how companies will use it to price out or bill out jobs, routing of crews to their jobs, track usage and maintenance of their equipment. b. After attending the recent GIE+EXPO, I can only say there are some exciting things in the marketplace, including changes in the way products are "fueled." Some of the changes to LP- and battery- operated products have the potential to help all of us, especially those companies who do business in areas that are being targeted for noise restrictions. 5) What is your overall outlook for the OPE industry in 2016? Jeff Plotka: a. I have a very positive outlook for 2016. There will always be a need for either spare parts to service older equipment or new equipment to replace older equipment. We are well prepared for both and are looking forward to a great 2016. b. As an association, we are cautiously optimistic about the OPE industry in 2016. Overall, our members have had a "fair to good year," with of course some having a "great" year. We talk about the future, and what it might bring, at all our meetings and agree that this is an industry that is not going to go away. It has the opportunity to thrive and prosper, and we are going to do everything we can to help our members do just that. JOHN HEDGES DIRECTOR OF SALES AND MARKETING CENTRAL POWER DISTRIBUTORS, INC. (CPD) (ANOKA, MINN.) 1) What is new and exciting about your company or organization heading into 2016? John Hedges: We have taken on a couple of new lines that will allow our dealer partners the opportunity to offer a lithium-based handheld product line and a high-quality line of gasoline outdoor power equipment, without mass merchant competition. As a Kohler distributor, we are excited about their new engine lineup of EFI. Kohler continues to be innovative with their product line and provide engine alternatives to the changing markets. The new KDI diesel engines are technologically advanced, and we look forward to selling them to small OEMs. MTD is offering long-handle tools to go with the pruners and loppers they brought on last year. We'll educate our dealer channel on how these tools can bring customers through their door. With a larger offering of products, dealers can compete with the mass merchants and provide quality service. E-Zone, our customer online ordering site, is getting some changes to make it more user friendly. 2) What were the OPE industry's top news stories in 2015, and what will they be in 2016? John Hedges: 2015 was a good year for many in the East with gigantic amounts of snow. Here in the upper Midwest, we weren't as fortunate. With snowfall held to minimum amounts and temperatures not being too cold, we hope for a much better snow year heading into 2016. Lithium-powered products will be a viable option to a specific section of our industry. The batteries being produced today are proving to hold up for contractors and landscapers. These products pose a slight threat to the handheld products today, but shouldn't be higher than 5 percent of the markets they serve. However, long term could prove to be a higher number, possibly up to 15 percent. Regulations against gas are not going to go away, so look for propaganda against gasoline-powered products. Tesla has proven that a good luxury car can be purchased with battery power, so I would imagine the same will happen with our industry. As a gas and diesel engine distributor, it is concerning where it is heading. With that said, dealers that ignore the lithium products are leaving money on the table. You should offer it for those customers that want it. That is exactly why we picked up a handheld lithium-powered line for 2016. The dealer base will continue to shrink as our industry ages. Skilled technicians will fade away. There are fewer young, educated techs entering our industry. With motorcycle, diesel, marine, and small-engine repair being the vocational choices, small-engine repair will continue to be on the low end of the totem pole. Until our industry can figure a way to increase salaries (including performance rewards), we will see this trend continue. Equipment sold today isn't what our grandparents saw years ago, and anyone servicing it will need to be qualified. And finally, Stihl (and our industry) is losing Fred Whyte, and I just want to say what a pleasure it has been over the last 30 years getting to know him and witness his successes. In my early days as the new Hoffco sales manager, he was helpful to me as I tried to understand our industry. His ability to work hard and keep things in proper perspective, should be a roadmap to all of us as we manage our businesses. Fred, thank you, and I know I speak for many when I say, "Good luck. We will miss you." 3) What are your predictions for the 2016 U.S. presidential race — who will be each party's nominee, who will be elected the next president, and how will the outcome affect the OPE industry? John Hedges: I believe this question is always asked because of me. I remember when Howard Dean was running and doing well. Then, he had a meltdown in IA and lost his followers. However, OPE went to print before that, and I had already made a prediction that he would be the Democratic candidate. Having not learned my lesson, I'll go with Mrs. Clinton and Mr. Rubio, or Cruz, or Trump, or Carson, or Fiorina, or Christie. (It would be nice to be right once.) As far as president, I give it to the Republican candidate. Our country is spiraling in an odd direction. It's nice to see candidates like Fiorina, Trump and Carson doing well. They are talking openly and are winning because of it. But in the end, the Right may get scared and go with a traditional politician. We'll see! 4) What will be the OPE industry's hottest trends in 2016? John Hedges: I believe we will finally have an interest rate hike after I write this and before this article prints. If I am correct, people with variable interest loans will slow down purchases of big items, but repair as needed. Could be good for service, bad for new equipment. COVER STORY 12 JANUARY 2016 OUTDOOR POWER EQUIPMENT www.outdoorpowerequipment.com