Q & A

We talk to leaders from Rotary Corporation and Stens

Temporarily but severely , the pandemic damaged manufacturing processes around the globe , which depleted inventories , which destroyed the supply chain , which was further diminished when consumers bought ( hoarded ?) whatever they could . To add specifics to this tale , Ernst & Young LLP , a global consulting and accounting firm , conducted surveys about supply chain conditions in late 2020 and September 2022 . Among those surveyed , 97 percent of supply chain executives from industrial products and automotive companies said the pandemic has had a negative effect on them . And 47 percent of all companies reported the pandemic disrupted their workforce . It takes a while to recover from such a global disruption .

For OPE dealers , the inventory story is improving , but it ’ s not yet a happily-ever-after tale . Our Q1 2023 dealer survey showed that 28 percent of dealers said their inventory was too low , though a full 50 percent said “ just right .” That continues a trend from Q4 2022 , when an equal percentage of dealers said inventory was too low .

We wanted to get the inventory story from the two largest non-OEM parts suppliers in the industry , Rotary Corp . and Stens . We reached out to both , independently , and asked them similar questions . From Rotary , we spoke with Chris Roessler , Rotary ’ s V . P . of marketing and advertising . From Stens , we spoke with Lisa Franks , senior marketing manager for Arrowhead Engineered Products and Stens .

What are OPE dealers ordering a lot of this spring ?

Roessler : It is a broad range of products , because we cover the whole U . S . Blades are strong , especially in southeastern states with sandy soil that dulls blades . But we have also been moving snow equipment in parts of the country . This year has been one of our trickiest for weather reasons . It ’ s been cool , even in the south , and grass isn ’ t growing as fast . That is causing a delayed spring . Trimmer line sales have been good , and we ’ re pushing the Copperhead line . Franks : Right now , dealers are ordering in-season items , blades and belts and maintenance items . I was out visiting dealers a few weeks ago , and what I heard and saw is that dealers definitely have inventory , generally 10 percent more than they had six months ago . The smaller dealers tend not to do stocking orders ; they buy as they need to , and these dealers have been going through inventory and buying more .

60.0 %

50.0 %

40.0 %

30.0 %

20.0 %

10.0 %

0.0 %

HOW WOULD YOU CHARACTERIZE YOUR CURRENT EQUIPMENT INVENTORY LEVEL ?

28.2 %

50.7 %

21.1 %

Too low About right Too high

What are your inventory levels overall ?

Roessler : Supply chain is back to normal for us . We are calling this a post-Covid “ normal ” year . Dealers are back to more traditional buying habits . Franks : The bottom line ? We have too much . We kept buying through Covid , and we ran a sale through May . The lead time has shrunk from four and six months to now two and three months . We get reports from the sourcing team , showing us inbound containers . And we ’ re still buying things , but we ’ re buying the right things – not just buying everything .

How have inflationary pressures impacted your products overall ?

Roessler : Our freight costs have returned to normal . Trucking was an issue as was getting things through ports . Being a manufacturer has helped us here . Franks : Many categories have been hit by price pressures . We made a price adjustment on April 1 . Some prices did go down , and some prices increased . It wasn ’ t a mass price increase like a couple years ago with the tariffs . I don ’ t think this has changed dealer orders at all . No real pushback .

What is your company ’ s outlook for the economy through 2023 ?

Roessler : My concern is interest rates , and the impact on homeowners and their flexible spending . Overall , we ’ re confident it ’ s going to be a good year . In these economic times people are likely

Source : OPE Business

24 OPE Business May 2023 www . OPEBusiness . com