Outdoor Power Equipment

September 2011

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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the globe. So greater fuel efficiency, lower cost of ownership, and greater productivity are needed. — Pat Cappucci, president, Schiller Grounds Care, Inc. From the manufacturer's perspective, we see increased costs in materials, delayed delivery of purchased components, increased logis- tics expenses and reduced equipment consumption. All of these fac- tors impact equipment cost and are either absorbed by the manufacturer, or passed along through the distribution channel. — Jason Showers, product manager, Morbark, Inc. Economic instability and high fuel costs continue to put pressure on contractor pricing. As a result, contractors are still closely evaluat- ing every purchase decision, and looking for creative ways to im- prove the bottom line. — Ken Taylor, general manager - corporate business division, John Deere I think what's having a big impact is how these events are affect- ing manufacturers in terms of their supply chains. Some manufac- turers are reconsidering how much on-hand component inventory is necessary to manage their production lines, in the event regular shipments of supplies are delayed due to a natural disaster. I'll use an example I recently heard about: a company in our industry an- nounced it's adding a warehouse facility. This particular company re- alized how dependent it is on supply from vendors to keep production going, and is taking a major step to ensure it won't be shut down in the case of something like a tornado or earthquake. And I think more and more manufacturers will move in this direc- There have been some short-term supply glitches due to the ef- fect of the tsunami on engine suppliers. Sales are certainly affected locally by the severe weather and resulting flooding that has oc- curred. These types of devastating events can impact sales in affected locales for years to come. The unrest in the Middle East has spurred greater interest in fuel efficiency and domestic fuel production. — Pat Penner, marketing coordinator, The Grasshopper Company For more "Equipment Trends 2011" coverage, visit www.landscape irrigation.com or www.outdoorpowerequipment.com OPE tion as well. I think this is a trend, certainly. — Brad Murphy, vice president of sales and marketing, Subaru Indus- trial Power Products There is a fair amount of uncertainty out there as it relates to the economy and there has been an up-tick in people taking on tasks that they might have hired out for in the past. This has a domino ef- fect that ripples throughout the supply chain. Outdoor power equipment has seen some of this, but not to the same level as other industries. As a manufacturer, we can only produce products that our audiences are looking for and continue to support the channel. — John Marchionda, VP, marketing, Husqvarna As a domestic manufacturer, we have seen little disruption in our supply chain but have benefited from competitors' sourcing prob- lems. — Nick Cusick, president of SourceOne Outdoor Power Equipment OUTDOOR POWER EQUIPMENT SEPTEMBER 2011 35

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