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: https://read.dmtmag.com/i/765117
www.outdoorpowerequipment.com OUTDOOR POWER EQUIPMENT JANUARY 2017 15 4) What will be the OPE industry's hottest trends in 2017? SC: The hottest trend in 2017 for OPE will be the rapid adoption of cordless products by existing customers and the new entrants to the OPE customer base. OPE dealers will experience a high velocity of customers switching from gasoline to battery and a new cadre of customers who, with quality and powerful battery products now an option, will choose a battery product for their very fi rst OPE purchase. 5) What is your overall outlook for the OPE industry in 2017? SC: I'm frequently labeled a graveyard whistler and always predict positive results, but with the announcement of Stihl's new lithium-ion products, and the consumer confi dence instilled by a pro-American government, I'm reasonably confi dent that the entire OPE industry will be the benefi ciary, resulting in signifi cantly increased dealer fl oor traffi c. Of course, the weather is the great arbiter. JOHN D. HEDGES DIRECTOR OF SALES AND MARKETING CENTRAL POWER DISTRIBUTORS, INC. (CPD) (ANOKA, MINN.) 1) What is new with your company and/or any OPE industry associations that you represent? John D. Hedges (JDH): We have become a one-stop shop for many outstanding product lines most dealers carry. Our ability to get it to the dealer the next day, in most of our territory, helps them control their inventory costs. Recently, we became the source for Strikemaster, Jiffy and Eskimo ice augers. While this doesn't sound that appealing in Florida, it is certainly something the dealers in the northern states have hoped for. CPD is actively searching for what the dealer wants, expects, and needs through our dealer advocacy interviews and our newsletter polls. We believe if we can become more important to our customers business, we will both prosper. With market opportunities and new customer trends changing all the time, who else can help us understand those better than our customers? 2) How will the election of Republican Donald Trump as president, along with Republicans maintaining control of Congress in both the House and Senate, impact the OPE industry? JDH: President Trump will be good for our industry. His administration may put less emphasis on ethanol production. Our Kohler EFI engines will continue to grow with or without ethanol around. Dealers benefi t from ethanol in gas since it creates carb issues, which equal service work. Engine manufacturers are constantly keeping up with strict EPA changes, and I wonder how many of those regulations will ease up or go away. It's hard to imagine that EPA restrictions will get tougher under his administration. In my past OPE opinions, I have commended the engine manufacturers for their ability to keep costs down and yet meet the guidelines. I am once again doing that. Thank you for your hard work to keep our prices in check. Our fuel prices have been around $2.00 a gallon since President-elect Trump won. Is that because he is pushing for more use of our own oil? Is he is a threat to the Saudis, and that's keeping oil prices lower? It's very early even in the guessing game, but something to consider. With lower fuel prices, our landscapers will benefi t. Obamacare will be attacked from all angles, but in the end, there are parts that the Republicans should consider keeping. Until they have an alternative and then get it to pass, Obamacare is here to stay. Healthcare costs are through the roof, and whatever is done, that will not change. With such a big part of a company's profi t picture, something has to be done to improve costs. I thought the winner of the presidential election would come down to an outsider this year, and you can see that in my responses for OPE's 2016 Industry Forecasts in January 2016 OPE! If you contribute to this annual industry survey enough times, you will be right at least once. I am excited for the next 4 to 8 years of a Trump Administration. 3) What was the OPE industry's biggest story in 2016, and what do you predict it will be in 2017? JDH: Ariens has sold Stens and JThomas to a company outside of our industry. It's still early as of this writing, but it should be business as usual for Stens customers. The new owner is an electrical supply company, and they will benefi t from the infrastructure that Stens offers. As a Stens distributor, we welcome the new owners into our industry and look forward to working with them. The weather was incredible in most parts of the country with an early spring and late fall. Most dealers heard the cash registers ringing longer than normal. With a good winter, dealers that have suffered fi nancially can get out of a jam and begin to stock up again. 2017 might bring changes to servicing for certain mass merchants. Servicing their customer products in the fi eld is the number one issue for mass merchants selling power equipment. It's possible that another short-lived solution will be created, then whither away again in 3-4 years. Until the manufacturers protect the dealers from diagnostic time losses and warranty losses, this will always be a problem. We (CPD) have suggested a solution with one mass merchant to have a checklist and develop a relationship with each dealer that provides service for that mass merchant. CPD hopes to have that fi nalized and in place by spring. 4) What will be the OPE industry's hottest trends in 2017? JDH: Manufacturers might be in the news a lot in 2017 with acquisitions and mergers. There are some amazing small OEMs left out there, and some might get purchased by their larger competition in 2017.