market data
CONDITIONS BY DEPARTMENT : PLEASE RATE THE FOLLOWING
BUSINESS OUTLOOK : AT THE END OF Q3 WHERE DO YOU EXPECT YEAR-END 2023 COMPANY REVENUES WILL END UP COMPARED TO 2022 ?
|
3.5
3
2.5
2
|
2.7 |
2.9 |
3.1 |
2.5 |
2.2 |
3.0 |
35 %
30 %
25 %
20 %
|
23.2 % |
20.3 % |
18.8 % |
|
1.5
1
|
15 %
10 %
|
11.6 % |
15.9 % |
8.7 % |
|
0.5
0
|
Overall Business Conditions |
New Unit Sales |
Used Unit Sales |
P & A Sales |
Service |
|
|
|
Department |
|
F & I |
5 %
0 %
|
1.5 %
Up 21 % or more
|
Up 11-20 % |
Up 1-10 % |
Flat |
Down 1-10 % |
Down 11-20 % |
Down 21 % or |
|
|
|
|
|
more |
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Strong in Q3 ; that ’ s up slightly from Q2 . Zero dealers in Q3 said that “ F & I ” was Very Strong .
What Provided Growth ? ZTR
We asked : What line of business provided you with the largest growth in Q3 ?
While battery-powered products continue to provide growth for OPE dealers we surveyed , zero-turn mowers drove the gains in Q3 . Some dealers called out stand-on mowers specifically . Handheld equipment , specifically trimmers and chain saws , also brought growth for dealers . The “ No Growth ” response was popular for this period , as it was in our Q2 survey . A few dealers mentioned the drought again , while a couple dealers cited increasing competition – “ cannot compete with big-box stores and internet prices .”
Business outlook ? Up and Down
We asked : Based on how you feel today and the end of Q3 , where do you expect year-end 2023 company revenues will end up compared to 2022 ?
The outlook is improving and worsening at the same time . Fewer dealers in our Q3 survey said they expect a Flat year-end result ; the number is down to 20 %, compared to 29 % of dealers in Q2 that expected a Flat year .
Less middle means more at the top and the bottom . In Q3 , 36 % of dealers said they expected 2023 to be up , while only 29 % in Q2 predicted growth . On other hand , more than 43 % of Q3 respondents said they expected 2023 to show a downturn . In Q2 , that group was slightly smaller .
External Risk Factors
We asked : Which of the following external risk factors are you more concerned about ?
In this Q3 survey , we learn that dealers are increasingly concerned about economic and political issues outside the U . S – 51 % of dealers said so , compared to just 35 % in the Q2 survey . Note : we compiled this survey data prior to the conflict in Israel and the Gaza strip .
Employment is a growing concern for dealers , as are the U . S . housing market , and the U . S . political environment . Still , price inflation remains a concern for more than 75 % of dealers surveyed , despite lower inflation .
And while 0 % of dealers in Q2 cited the Coronavirus as a concern , it eased back into dealers minds , with nearly 5 % of dealers in Q3 claiming concern as the virus makes its way back into our lives at the start of the cold and flu season .
www . OPEBusiness . com December 2023 OPE Business 17