INSIDE AGRI-TURF

After a career spanning 30 years at Stihl GB, the last 14 years as managing director, Robin Lennie retires on 31 December.

In the penultimate Inside Agri-Turf episode of 2020, he talks openly and frankly to Chris Biddle about the chemistry between himself and Peter Baker, the MD when he joined the company in 1990 as Finance Director, who needed 'fag-packet' projections rather than complicated financial modelling.

He also talks about the challenges of developing friendships amongst dealers within a commercial relationship, particularly when trading terms had to be changed.

For all its size, Stihl is a modest company he says which is why German executives liked to welcome dealer and press trips to the Stihl plants to provide them with a 'look behind the curtain'.

This was not the farewell to staff and dealers that he had planned - COVID restrictions meant the cancellation of a final 'tour' - but there is obvious pride and satisfaction in overseeing a massive increase in sales during his tenure at Stihl from £17 million in 1990 to over £120 million in 2020.

Chris Biddle is joined this week by Keith Christian, Director of BAGMA (British Agricultural and Garden Machinery Association) and leading agricultural journalist Martin Rickatson to reflect on the 2020 season for the Agri-Turf industry - and provide some thoughts on the months ahead.

The episode was recorded in the midst of the final Brexit talks to decide on the terms of the UK's withdrawal agreement from the EU which comes into force on 31 December 2020. With much of the detail yet to be agreed there is a likelihood that Britain may leave without an agreement.

So much of the talk surrounds the likely impact of Brexit but also takes in the ongoing consolidation of dealers, the likelihood of manufacturer owned dealerships, the need for manufacturers and dealers to work together, likely mergers and acquisitions, the introduction of robots into farming and the likely effect on the machinery market as subsidies are removed over the next few years.

Chris Gibson, MD of GGM Groundscare relives a season that veered from optimism through to fear when lockdown was announced in March, and ended with pride in his team for pulling together and navigating a very challenging season.

He tells how some initiatives introduced because of Covid restrictions actually improved the business, how his team made calls to customers simply to say 'hello' and how introducing new products because of franchise realignments were difficult 'because of the good job we had done with competitive brands in the past'!

He also talks about the importance to the business of service contracts, of having a well-organised hire department and his belief that there is plenty of pent-up demand in the professional turfcare market for next year - as long as supplies can be maintained.

This episode we go 'across the pond' to catch up with America's leading dealership coaches, Bob Clements and Sara to discuss their new book You're the Problem - and the Solution which provides dealers with advice and tips on how to reclaim their sanity, their life and their dealership.

We also talk about the impact of COVID19 on US dealer business this year , the relationship between manufacturer and dealer, and whether manufacturers really understand the psychology of being a dealer, and how dealer produced product videos can be more effective than those made by manufacturers.

Bob also tells how a US ag dealer went from being £1 million down on his sales projection in April this year - to being £1m up one month later!

Bob Clements International

Bedfordshire ATV specialist, MKM Agriculture, are unusual in being able to offer the four leading Japanese ATV brands under one roof.

Managing Director Anthony tells Chris Biddle how the company gradually built up a 'full house' of the franchises, and how they fit well together.

He also discusses the importance of operator training and the benefit of being a qualified EASI (European ATV Safety Institute) instructor.

MKM opened a second branch in Suffolk last year and says that winning the ATV Dealer of the Year award organised by Service Dealer last year provided a valuable 'status' during 2020 and a 'badge of service quality' which has helped to exceed his expectations for the business in challenging trading conditions.

MKM website

Chris Biddle is joined by Andrew Goodacre, Chief Executive of the British Independent Retailers Association (bira) for an an episode recorded the day that England entered a second national lockdown of 2020, a decision which Andrew describes as his greatest disappointment of the year to-date.

With so many 'bricks and mortar' retailers having to close for 3 months during the first lockdown, but with a partial recovery underway, he says that many independent retailers were banking on making up lost ground in the run-up to Christmas. "This will mean that many small businesses will have had to close for four months this year".

He questioned the decision to open garden centres who focus almost exclusively on Christmas related products rather than gardening at this time of the year, giving an unfair advantage over many small shops.

However he praised the ingenuity and innovative moves by many independent retailers 'to go the customers who couldn't go to them'. "But there is still much to do, around 80% of independent retailers have websites, but only 25% have transactional facilities built in"

Website: British Independent Retailers Association

A highly topical conversation with David Hart, MD of Kubota UK recorded on a day when two of Kubota's long standing dealers agreed on an uncoupling of key franchises in order to provide greater clarity and focus for their companies in the future.

It was a complex and complicated decision agreed between two respected multi-branch dealers.

Elsewhere in a wide-ranging interview, David talks about:

(09:40) Difference between manufacturers and dealers

(15:38) Challenges for dealers of changing major franchises

(21:14) The story behind the uncoupling of franchises by two main dealers

(31:40) Finding new well-resourced dealers

(33:25) Manufacturer owned dealerships and external investment

Kubota website

Chris Biddle website

They are the 'In-Betweeners' , specialist sales and service dealers who are the vital conduit between the manufacturer and the end-user. Almost inevitably their numbers are diminishing as moves by manufacturers to establish multi-branch 'super-dealers' gathers pace.

There is often a clash of cultures between the priorities of major corporations with responsibilities to shareholders and family-owned dealerships whose priorities lie closer to home.

Are there enough well-resourced dealers to meet market needs? Will we see dealerships become attractive to outside investors? Will manufacturers be tempted to fully own dealerships in the future? And in the lawn and garden machinery sector, will dealers be able to take advantage of the rise in shop openings by independent retailers in response to the mass closure of chain store branches?

During the episode, Chris Biddle talks to Steve Gibbs, Editor of Service Dealer magazine about a recent but growing threat to dealers (16:50)

These and other issues will be explored by Chris over the coming weeks in conversation with those at the sharp-end of the industry.

Feedback or comments: Email Chris

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Chris Biddle in conversation with Peter Arrand, President of BAGMA (British Agricultural and Garden Machinery Association) following the formation of the Association's new Training and Education group.

We talk about a possible skills gap, whether the industry is talking the right language, the importance of spreading the message into schools and the looming introduction of T-Level qualifications

Paul Hemingway, the current President of the Institution of Agricultural Engineers talks to Chris Biddle about the role of the Institution.

He also recalls his more than 30 years in senior management roles at JCB, his concerns about the lack of diversity in the industry, about the attractions of agricultural engineering as a career and how Brexit may result in UK farmers have to face the challenges and ultimate success of their counterparts in New Zealand when subsidies were removed.

Best quote: "In the 1970s I was told not to go into tractor design - because it had all been done!"

IAgrE website