Outdoor Power Equipment

February 2017

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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www.outdoorpowerequipment.com OUTDOOR POWER EQUIPMENT FEBRUARY 2017 19 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? ES: I hope it will mean less regulations and taxes. If the Trump administration, along with the House and Senate, can reduce the amount of regulations that impact business, this could lead to increased capital investment, jobs and hopefully bottom-line profi t. If the middle-class consumer had more disposable income, this would lead to economic growth, but a reduction in taxes alone will not be enough. The rise in health care premiums, along with higher deductibles, the last few years has put a major strain on middle-class families, so health care reform is also needed to increase disposable income. 3) What was the OPE industry's biggest story in 2016, and what do you predict it will be in 2017? ES: Ninety-six percent of respondents of the OPE 2016 Dealer Survey state there is a shortage of qualifi ed technicians. I think this will be one of the top stories for 2017 and beyond, and the industry and educator members of the EETC are committed to help address this shortage. There also appears to be a need for competitive pay to recruit and sustain the OPE technician force, as 47 percent of the respondents indicate the starting pay for a new service technician is below $13 an hour and 20 percent of respondents pay below $15 an hour for their best service tech- nicians. We have to ensure that the pay scale refl ects that of the skill-set we are requiring of the technician. 4) What will be the OPE industry's hottest trends in 2017? ES: Technology will be the hot trend; everything from autono- mous equipment to equipment that communicates via Bluetooth/ cellular signal directly to the manufacturer and/or owner for service reminders, software updates or error/fault reporting. 5) What is your overall outlook for the OPE industry in 2017? ES: My overall outlook is very positive, and I foresee continued growth in 2017 for the OPE industry. BRIAN MELKA PRESIDENT KOHLER ENGINES (KOHLER, WIS.) 1) What is new with your company and/or any OPE industry associations that you represent? Brian Melka (BM): We continue to launch new products that are driven by the needs of our customers and what they're telling us. We recently launched a safer, low-emission engine for the portable generator market; a turbo-diesel engine for UTVs in intense military applications; and an advanced EFI system for our water-cooled Aegis engine that delivers more power, lower fuel consumption, and easier serviceability. We also continue to look for ways to bring commercial performance to the consumer market with the launch of our 7500 EFI and 7000 PRO series consumer twin engines. The same technology and performance found on our Command PRO series of commercial engines is now available on our consumer models. 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? BM: It's much too early to know how the incoming administration will impact the OPE industry. But, in a general sense, we're optimistic due to some promising trends that pre-dated the election, including ever-increasing demand for EFI-based products, where startability, performance, ease of operation, and lower operating costs are important. Even with lower fuel costs, users are valuing EFI more than ever for its ability to enhance productivity. There has also been growing strength in residential and commercial construction, which has really benefi ted our customers in diesel-based construction equipment businesses. 3) What was the OPE industry's biggest story in 2016, and what do you predict it will be in 2017? BM: Similar to previous years, the weather dominated many conversations in 2016. This year's pattern helped the OPE industry to get off to a fast start. But, then cooler northern temperatures moved in and slowed the market over the summer months. Fortunately, a warmer fall season helped to carry the industry into a stronger year-end, and we're eager to keep the positive momentum going. 4) What will be the OPE industry's hottest trends in 2017? BM: We anticipate continued growth in the UTV and ZTR segments, and we're well positioned to meet this increased demand. Kohler now offers a wide variety of gas and diesel engines designed to help enhance reliability, durability and overall performance in UTV applications. When it comes to ZTRs, we have several ideal solutions for both commercial and consumer users. For commercial cutters, our popular Command PRO EFI lineup continues to deliver lower operating costs, reduced downtime, and impressive fuel savings. Consumers can also now benefi t from our EFI technology following the 2016 introduction of our 7500 Series EFI engine — the very fi rst Kohler twin-cylinder EFI model designed specifi cally for consumer lawn mowers. 5) What is your overall outlook for the OPE industry in 2017? BM: ZTR mowers continue to be a popular option for today's homeowners, so we anticipate some expansion in that segment. But, the steadiest growth will come from the commercial segment as the large and affl uent "baby boom" generation ages and turns more and more to professional lawn services. Continued on page 34

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