Outdoor Power Equipment

January 2015

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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celebrates the strong connection people have with STIHL products and dealers. Of course, the lifeblood of any manufacturer is new products, and we have several new offerings in 2015. This will include further expansion of the lithium-ion battery product line and more new products with the STIHL M-Tronic engine management system, which can automatically adjust for a variety of operating conditions, including dirty filters, bad fuel, and high altitude. 2. What were the OPE industry's top stories in 2014, and what do you predict they will be in 2015? Fred J. Whyte: Ethanol remained a topic of increasing concern this year, and we foresee it staying so in coming years. We continue to work with others in the industry in support of the Outdoor Power Equipment Institute (OPEI) "Look Before You Pump" initiative, which helps educate consumers on the potential dangers to off-road engines if using fuel containing levels of ethanol higher than E10. We remain a leader in the industry in preparing for these type of changes, but it will take the industry coming together to help consumers understand what it could mean for their product investments. The uptick in the housing market and reduced unemployment, along with job creation, will remain significant topics for the foreseeable future, as will the economic recovery, in general. Health care legislation will continue to be an issue for small businesses in the coming year, as will other regulatory concerns. The resurgence of American manufacturing will continue to be supported by less-expensive energy costs in 2015, as well. 3. What will be the OPE industry's hottest trends in 2015? Fred J. Whyte: We anticipate seeing increasing participation in the OPE industry by independent hardware and farm/ ranch retailers who can often more easily accommodate the weekend yard care hours of the homeowner customer. A growing dissatisfaction with mass merchants will fuel the continued growth of the "buy local" movement in favor of independent dealers that offer technical service and point-of-sale assistance. Being "retail savvy" should include integration of more technology in the showroom through online and mobile devices. I encourage dealers to take full advantage of these advances to aid in the sales process. As the industry and its customers continue to embrace social media, it will be increasingly important for dealers to become actively engaged in these platforms. Consumer expectations of service will come to include being able to post questions and concerns about products and service, and dealers need to be ready to respond in the formats of their customers' choosing. Mobile-capable websites will also continue to grow in importance. Dealers can also expect continued improvement and growth in alternatives to petroleum-based fuels, such as lithium-ion battery technology that will deliver longer run times and faster recharging than ever before. A significant development will be adoption of this technology by professionals who are seeing lithium-ion technology as a lucrative niche to add to their operations. STIHL is proud to offer professional tools that address ergonomics and run times with the STIHL Battery KombiSystem product line, including our STIHL AR 900 backpack battery, which provides run times up to 10 times longer than the original STIHL battery (AP 80). 4. What advice do you have for OPE dealers in 2015? Fred J. Whyte: Dealers will face some of the familiar challenges of recent years, including profitability and competing with mass merchants, in particular. An independent dealer can struggle with gaining share of mind in a crowded marketplace with both present and future customers. Pooling resources with others through manufacturers' programs, such as the STIHL Marketing Advantage Program, can help raise the profile of the brand and dealers. In addition, working with other like- minded small businesses and "buy local" organizations can also benefit independent dealers and their customers. If not already doing so, all qualifying dealers (not just STIHL) should consider participating in the Independent We Stand (www. independentwestand.org) movement that continues to gain traction nationwide. By touting the economic benefits an independent business provides to the community, dealers can influence where consumers spend their hard-earned dollars when shopping locally. STIHL is pleased to be the founding sponsor of this movement. 5. What is your overall outlook for the OPE industry in 2015? Fred J. Whyte: Based upon the latest forecast prepared for OPEI, the industry is expected to grow 3 to 4 percent in 2015. This may be tem- pered slightly if unemployment remains high, even if moving in the right direction. The econ- omy should continue to expand, possibly accel- erating in 2015; and we are seeing some positive movement in the housing market. Though lim- ited due to shortage of skilled labor, it is worth noting that the landscape industry anticipates an increase of 2.5 percent in employment opportu- nities. Overall, we have an optimistic outlook for the industry, STIHL, and STIHL servicing dealers. JEFF ANDREWS PRESIDENT OUTDOOR POWER EQUIPMENT AFTERMARKET ASSOCIATION (OPEAA) (ALEXANDRIA, VA.) & DIRECTOR OF SALES & MARKETING DESERT EXTRUSION CORP. (PHOENIX, ARIZ.) 1. What should OPE dealers know about your company's plans for 2015? Jeff Andrews: The Outdoor Power Equipment Aftermarket Association (OPEAA) is a group of companies that focuses on the opportunities afforded by the outdoor power equipment parts and accessories business. OPEAA is an organization whose members' combined strength has a major impact on the future direction of the power equipment industry. As we look forward to 2015, OPEAA will continue to educate through programs such as our Statistics Program and Dealer Surveys. We are also looking forward to our annual meeting and conference during February on the River Walk in San Antonio which focuses on up- to-date business and industry trends, direction and education — along with more than our fair share of networking (that's code for having fun). Growing our membership and influence remains a top priority. If you have interest in joining OPEAA, visit our website at www.opeaa. org or call Jean Hawes at (703) 549-7608. 2. What were the OPE industry's top stories in 2014, and what do you predict they will be in 2015? COVER STORy 12 JANUARY 2015 OUTDOOR POWER EQUIPMENT www.outdoorpowerequipment.com

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