Outdoor Power Equipment

January 2016

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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COVER STORY 14 JANUARY 2016 OUTDOOR POWER EQUIPMENT www.outdoorpowerequipment.com Lithium handheld products will begin to replace gas with older users and young homebuyers. Presidential race goes to an outsider. How will this hurt or help our businesses? Drought of 2016 hurts lawn and garden industry. USA manufacturers begin bringing back production to United States. 5) What is your overall outlook for the OPE industry in 2016? John Hedges: Our industry is strong in tough times. Most everyone has grass, many have snow, and equipment sits in most garages. 2016 will be just fine. BOB WALKER PRESIDENT WALKER MFG. CO. (FORT COLLINS, COLO.) 1) What is new and exciting about your company or organization heading into 2016? Bob Walker: We are continuing to broaden and improve our product offering to the market within the overall category of front- mount zero-turning-radius riding mowers. This is an exciting niche in the power equipment industry and holds great potential for dealers notwithstanding the popularity of mid-mount riders and standers in today's market. Our "Out Front Advantage" factory sales training has been receiving accolades from the dealer sales representatives who have participated. Four hundred have attended the training sessions over the past three years, and eight more sessions are planned for 2016. Finally, dealers should be excited to be able to represent a product manufactured by a family-owned, family-managed company. Third-generation family members are at work in the company, and the new blood and new energy that comes from the next generation means the years ahead working with our company will bring some of the very best opportunities available in our industry. 2) What were the OPE industry's top news stories in 2015, and what will they be in 2016? Bob Walker: The biggest industry news story in 2015 was the acquisition of Billy Goat Industries by the Briggs & Stratton group. That story, along with the previous year's acquisition of Dixie Chopper by Textron, points to the dwindling number of private, family-owned manufacturers in the OPE industry. Even though the naysayers would predict that no family-owned manufacturers will survive in this industry, we (and we believe several others) have a stubborn independent streak that says to the industry "we're still here." 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? Bob Walker: I like Ben Carson for the Republican nominee, and I think it is pretty certain the Democrats will field Hillary Clinton. I predict Carson will be elected. He will appeal to voters because he is a smart man with a good heart and an unusual amount of "common sense" not often seen in politics and governance. The OPE industry will benefit from the election of Ben Carson (or most of the other Republicans if elected) by supporting policies that are friendly to businesses in general, and particularly to privately owned businesses, which are the backbone of our economy. 4) What will be the OPE industry's hottest trends in 2016? Bob Walker: Manufacturers will be providing mowers with more powerful, and fuel-efficient (EFI) engines. 5) What is your overall outlook for the OPE industry in 2016? Bob Walker: We predict a good year for the OPE industry with around 5-percent growth over 2015. DYLAN REWOLDT OEM SALES AND MARKETING SUBARU INDUSTRIAL POWER PRODUCTS (LAKE ZURICH, ILL.) 1) What is new and exciting about your company or organization heading into 2016? Dylan Rewoldt: Loyalty is Subaru's main focus in 2016. Subaru prides itself on offering the best value and service in the industry. We also know that much of our success can be attributed to our distribution and product support system. Our dealers have played a key role in helping us build and maintain close relationships with customers and gain insight into how we can continuously improve our levels of quality and service. We want to thank our dealers for all they do for us, so we developed a dealer loyalty program that we are excited to launch in 2016. We are also excited about some key placements we have secured with major brands in the chore product market. We have seen a huge growth in demand for Subaru products, which we think puts us on track for a record-breaking sales year. 2) What were the OPE industry's top news stories in 2015, and what will they be in 2016? Dylan Rewoldt: 2015 proved to be a rollercoaster of a year, but the OPE industry seems to have finally taken an upward turn since the most recent recession. In the engine business, we are constantly working with the EPA to meet new emissions standards. I believe ethanol will continue to be a top news story in 2016, and it's important to continue to educate small-engine users on the effects of ethanol. Additionally, weather will always play a major role in buying trends. Weather is impossible to predict, but as of now, 2016 weather forecasts look favorable for our industry. 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? Dylan Rewoldt: The 2016 presidential race should be an interesting one. At this point, both parties lack a strong candidate, so it's basically still up in the air. It's been an entertaining

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