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.
Issue link: http://read.dmtmag.com/i/626545
6 FEBRUARY 2016 OUTDOOR POWER EQUIPMENT www.outdoorpowerequipment.com EPG Media & Specialty Information 10405 6th Ave. N., Suite 210 Minneapolis, MN 55441 OPE STAFF Group Publisher David Voll Associate Publisher John Kmitta Editor Steve Noe Art Director Brian Snook Senior Production Manager Karen Kalinyak DIRECT MAIL LIST SALES MeritDirect, Jim Scova, (914) 368-1012; e-mail jscova@MeritDirect.com REPRINT SERVICE Robin Cooper, email rcooper@epgmediallc.com EDITORIAL ADVISORY BOARD Founder and Owner OPE Consulting Services Jeff Sheets Senior Advisor Servantage Dixie Sales (retired) Jim Starmer President Plano Power Equipment Glen Whitt Director of Sales and Marketing Central Power Distributors, Inc. John D. Hedges CIRCULATION For subscription inquiries and customer service questions, please call (845) 856-2229 or fax (847) 763-9569 customerservice@epgmediallc.com business hours: 9 a.m.-5 p.m. EST Publisher's Notice: We assume no responsibility for the valid- ity of advertising claims in connection with items appearing in Outdoor Power Equipment. Commercial product names are used for the convenience of the reader. Mention of a commercial product does not imply endorsement by Outdoor Power Equipment or EPG Media & Specialty Information, or preference over similar products not mentioned. EDITORIAL OFFICES EPG Media & Specialty Information 10405 6th Ave. N., Suite 210 Minneapolis, MN 55441 ACCOUNT REPRESENTATIVES: EAST Chris Pelikan Senior Account Manager Phone: (954) 964-8676 cpelikan@epgmediallc.com MIDWEST Peggy Tupper Senior Account Manager Phone: (763) 383-4429 ptupper@epgmediallc.com WEST Leslie Palmer Senior Account Manager Phone: (763) 383-4460 lpalmer@epgmediallc.com As has become a tradition here at OPE, we kicked off the New Year with our two-part "Industry Forecasts" series with the second installment appearing in this issue, starting on page 16. I would like to sincerely thank all of the 13 industry leaders who took time out of their busy holiday schedules to share their thoughts on the state of the industry heading into this year. To help you gain even further insight as to where our industry is headed between now and 2019, I also wanted to share with you the following information that I received from The Freedonia Group, Inc., a Cleveland-based industry market research firm, regarding its 340-page Power Lawn & Garden Equipment study that was published in December 2015. "Demand for power lawn and garden equip - ment in the U.S. is expected to rise 3.2 percent per year to $11.7 billion in 2019. Through 2019, gains will be supported by accelerating growth in the single-family housing stock and the number of landscaping establishments, which will result in increased demand for both consumer- and com- mercial-grade equipment. Sales will also benefit from ongoing technological innovations, including improvements to battery-powered products that allow for longer runtimes and faster recharging. "The residential market accounts for the major- ity of power lawn and garden equipment sales. Gains will primarily stem from expansion of the market as the housing stock increases. Gains in the commercial market are expected to outpace those in the residential market, driven by accelerating growth in the number of landscaping establish- ments as more homes and businesses outsource these services. However, growth in the commercial market will be restrained to a degree by weakness in the golf industry as the net number of golf courses continues to decline. "Sales of consumer-grade lawn mowers will benefit from the expansion in the housing stock, supporting demand for both new and replace- ment lawn mowers. Value gains will be boosted by growing consumer interest in higher-end models, such as riding mowers, electric types, and those that feature self-propulsion. According to analyst Katherine Brink, 'Although robotic lawn mowers are expected to remain a niche product in the resi- dential market through the forecast period, sales will triple through 2019 as the number of product offerings increases and prices begin to come down.' "Turf and grounds equipment will see some of the fastest gains as the number of landscaping establishments continues to climb and existing establishments expand their fleets. Lawn mowers and turf and grounds equipment, the two larg- est product segments, will combine to account for more than half of value gains through 2019. Smaller segments such as blowers, vacuums, sweepers and hedge trimmers are also projected to see above-average growth as landscaping establishments expand and replace their equip- ment and as commercial users become more confident in higher-value, battery-powered models." For more information on The Freedonia Group's Power Lawn & Garden Equipment study, visit www.freedoniagroup.com. Industry insights UPFRONT Editor Steve Noe | snoe@epgmediallc.com OPE