market data
OPE dealers also experienced growth due to mowers in Q4 2022 , though the group was smaller , roughly 40 percent . Dealers also singled out tractors for growth in Q4 , much more so than in Q1 .
Considering adding lines ?
We asked : Are there specific product segments you ’ re interested in adding in 2023 ?
Three-quarters of the dealers who answered this question in our Q1 2023 survey said , “ No ” in some form ( including None , Not at this time , and one NO followed by several exclamation points ). That leads us to believe that , at least for these OPE dealers , inventory is good and dealers are ready for selling season with an adequate supply of whole goods . A few dealers are looking for more “ battery ” products , as well as UTVs , mowers , and “ robotics ” equipment . This data mirrors what we saw in our Q4 2022 survey data .
We did find that a few dealers , in both the recent survey and the Q4 2022 survey , specifically requested a “ replacement line for Honda walk-behind mowers .” Following the company ’ s 2022 announcement that it planned to discontinue manufacturing of its current walk-behind mowers , we ’ ve spoken with a few Honda dealers who are actively searching for “ a highquality product that I can make money on ,” as Mark Guss said . Guss owns Bethel Power Equipment , in Bethel , Conn .
Business outlook ?
We asked : In general , to what extent has your business outlook changed compared to 6 months ago ?
It seems many of you are good at tracking business over the long term , as 41 percent of OPE dealers replied with “ About the same .” On the optimistic side , nearly 23 percent of OPE dealers indicated that their business outlook has turned “ Significantly better ” or “ Somewhat better ,” compared to six months
80.0 %
70.0 %
60.0 %
50.0 %
40.0 %
30.0 %
20.0 %
10.0 %
0.0 %
64.8 %
Consumer financing costs / availability
WHICH OF THE FOLLOWING EXTERNAL RISK FACTORS ARE YOU MOST CONCERNED ABOUT ?
2.8 %
Coronavirus / COVID-19
52.1 %
Economic and / or political issues outside of the U . S .
25.4 %
Employment outlook
14.1 %
Housing market
69.0 %
Price inflation
1.4 %
Tariffs / trade wars
52.1 %
U . S . political environment
60.6 % ago . That ’ s up from the 18 percent who said the same in Q4 2022 .
The responses of “ Somewhat worse ” and “ Significantly worse ” declined in Q1 to 36.5 percent , down from 48 percent in Q4 , and 50 percent a year earlier ( Q1 2022 ).
External Risk Factors
We asked : Which of the following external risk factors are you more concerned about ? ( Dealers could choose multiple responses .)
“ Price inflation ” is most concerning to dealers we surveyed . Some 69 percent of dealers in our Q1 survey are concerned about inflation . In our Q4 survey , just 43 percent of dealers found this concerning . Note : We changed the wording of this response to “ price inflation ” instead of “ high / rising gas prices .” It seems broader “ inflation ” is the concerning topic , and not just “ gas prices ” which have gone through up and down price changes in the last few months .
“ Consumer financing costs ” is a concern for nearly 65 percent of dealers in the Q1 survey , that ’ s up from 60 percent at the end of 2022 .
“ Supply chain / inventory ” is less of a concern for dealers in Q1 , compared to the 80 percent of dealers who checked this box in Q4 .
The “ U . S . political environment ” is a concern for 52 percent of dealers who completed our Q1 survey . That ’ s up slightly from 49 percent in Q4 . With increasing talk of presidential politics ( editor ’ s opinion , it ’ s too early ), this is likely to be an increasing area of concern .
Lowest on the list of concerns for OPE dealers are a “ trade war ” at just 1 percent , and the “ coronavirus ” at about 3 percent .
Supply-chain / inventory challenges www . OPEBusiness . com May 2023 OPE Business 17