Outdoor Power Equipment

February 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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administration elected. The new administration will determine how emissions regulations and environmental regulations will impact the industry going forward. I am reminded of a quote from President Ronald Reagan — "Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it." 4) What will be the OPE industry's hottest trends in 2016? Erik Sides: I said this a few years back, and I will say it again: "technology" whether it's on a piece of equipment or a new app that helps a dealer conduct business quicker and more efficiently. Technology is changing and will continue to change how we conduct business and interact with our customers and equipment. 5) What is your overall outlook for the OPE industry in 2016? Erik Sides: I am optimistic about the outlook for 2016. HAROLD REDMAN PPRESIDENT TURF AND CONSUMER PRODUCTS BRIGGS & STRATTON CORP. (MILWAUKEE, WIS.) 1) What is new and exciting about your company or organization heading into 2016? Harold Redman: We've introduced some of the most exciting new products in the company's recent history. In the growing residential zero-turn category, the new Snapper 360Z and Simplicity Courier offer commercial-inspired performance and provide the added utility of a versatile cargo bed. Additionally, the Courier offers a patented suspension system and mesh seating for greater operator comfort. Most models offer fabricated mower decks that provide the customer a more durable product, along with a great cut. We continue to grow our commercial footprint with new commercial turf and lawn care products. In our Ferris brand, we've introduced a new soft ride stand-on zero-turn, featuring a patent- pending suspended operator platform and an EFI Vanguard engine option — these machines offer the best in compact maneuverability and productivity. We've also introduced a new line of Ferris fleet zero-turns for 2016, which offer solid performance and durability, along with great value. In the Billy Goat line of specialty turf care products, our hydro aerators and sod cutters are really helping landscapers get the job done easier and have become the standard for productivity. For 2016, we've upgraded the content of our websites to be more interactive for users, and added ratings and reviews for our products. We've also changed the mix of our advertising programs between digital and traditional formats to optimize our message to the targeted audience. 2) What were the OPE industry's top news stories in 2015, and what will they be in 2016? Harold Redman: For 2015, there were several market and economic factors that impacted OPE manufacturers, dealers and consumers. For marketers that sell portable generators, 2015 was the third year without significant hurricane or ice storm activity, which drive generator sales. Thus, overall category sales have fallen over the years for all industry segments. The U.S. housing market is still in a slow recovery, likely resulting in slower annual growth in OPE. That said, we've experienced fairly normal weather patterns in most regions of the country over the last 2 years, which have resulted in healthy dealer sales growth in categories such as zero-turns and commercial mowers. The decline in the price of gas has also had a positive impact on the bottom line for commercial cutters and landscapers, and of course, creates additional available dollars for consumers to spend on category products and services. The increased strength of the U.S. dollar versus other world currencies, along with the economic environment in many regions of the world, have made it difficult to sustain export shipments from U.S.-based OPE manufacturers, as well as maintain in-market pricing and profitability. The record attendance and participation at the GIE+EXPO show in October highlights the optimism by manufacturers and customers for U.S.-based growth opportunities in 2016 and beyond. Most exhibitors stated the GIE+EXPO show was the best ever. El Niño's prediction for a warm, wet winter is coming true, and having a negative impact on sales of snowthrowers as of the date this is written. If the trend continues, it's likely to create cautiousness from dealers heading into the spring, and put pressure on snowthrower manufacturers to make sure dealers aren't severely cash-flow impacted as the spring season approaches. Hopefully, winter will arrive in time for dealers to sell through their inventory 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? Harold Redman: I won't make any predictions for the presidential race; all I'll say is that it's interesting to watch. Of course, as a key industry manufacturer and participant in OPEI, we will watch the race closely to better understand the nominee and party's position on compliance and regulatory issues that can have an impact on our industry, along with stances on economic policy that can also drive consumer behavior. 4) What will be the OPE industry's hottest trends in 2016? Harold Redman: Zero-turns will likely remain as a hot product trend for 2016. The average ride customer is shopping for a new product every 7-8 years, and within that time frame, zero-turns have really gained momentum by appealing to consumers due to their timesaving benefit. Expansion in digital and social marketing programs offered by manufacturers and dealers in order to optimize their messaging and reach customers through many forms of media. Today's OPE customer continues to refer to social media and ratings and reviews, in addition to manufacturer's websites, to evaluate product and service options and make an informed buying decision. www.outdoorpowerequipment.com OUTDOOR POWER EQUIPMENT FEBRUARY 2016 17 FEATURE STORY Continued on page 30

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