trends annual rate , many economists caution that the vigorous spending seen all year is not likely to continue in the coming months . The data also show that U . S . consumers are saving less and using credit cards more often . While the recession that so many people forecast for more than a year has not materialized , we remain in uncertain post-pandemic conditions .
With consumer financing rates at their highest in years , dealers and manufacturers will need to get creative and aggressive . Ideal offers a few ideas “ to move inventory without heavy discounting . They include :
Added Value : Offer free service plans , extended warranties , or training sessions with the purchase of whole goods .
Trade Ins : Allow customers to trade in their old equipment for a discount on the new , slower-moving models . When priced right , used equipment can be a good entry-level option for buyers .
Loyalty Programs : Reward regular customers and encourage repeat business .
Product Trends
The Ideal Trends report includes a wide range of data about the sales , pricing , and adoption rates of battery powered equipment in North America . It points to a survey of Ideal and c-Systems dealers across North America . When asked what power source equipment dealers foresee becoming more in demand by customers , 54 % of dealers said battery , followed by 31 % who said gasoline .
According to market research firm TraQline , battery equipment sales already passed gas equipment . “ After significant growth , in June 2022 , battery-powered ( 38.3 %) overtook gas-powered ( 34.3 %) as the most purchased fuel type ,” the company reported . “ This trend has continued through June 2023 , with battery-powered purchases increasing 1.9 points , and gas-powered purchases decreasing 2.0 percentage points .”
In our own dealer surveys , we hear from dealers who don ’ t like this trend , others who accept it , and a few who think it ’ s driven solely by government fiat .
While many power equipment manufacturers say things like “ gas isn ’ t going away ,” and “ we are a dual fuel equipment provider ,” new-product development trends lean toward battery-powered equipment . Stihl Chairman of the Executive Board Michael Traub said , “ Our top priority in terms of investment lies in the
As a manufacturer focused on battery-powered equipment , Kress is working to prove that batteries can fuel commercial needs too .
development and production of innovative and powerful battery-operated products .” The company also announced , as we reported in April of this year , that by 2027 , Stihl plans to increase its share of battery-powered tools to at least 35 percent , with a goal of 80 percent for 2035 .
Battery power is not the only product trend in outdoor power equipment , but it ’ s the main one , and the one we are all talking about . Whether pushed by manufacturers , consumer demand , or government regulation , the volume of battery-powered equipment is increasing . We spoke with Bill Estes , general manager for Anderson Power Products , a manufacturer of power connectors for a number of industries , including outdoor power equipment . And we asked Estes how fast the electric equipment shift is happening . “ It ’ s coming pretty fast ,” Estes said . “ What you ’ ll see in the next year ’ s ahead is more and more companies coming out , and commercial volumes hitting higher levels in 2024 .”
Along with product manufacturers and battery suppliers , Anderson is working to make electric equipment work as consumers need it to . “ We ’ ve gotten more requests from manufacturers to deliver smaller products , faster charging , more signaling , etc .,” he said .
Power equipment dealers and landscape pro users are often part of these development discussions too . We see that with Honda as it develops its new battery-powered autonomous mower . As stated in its Trends Report , Ideal suggests dealers meet this trend by understanding the sustainable practices and many of their customers . Ideal says dealers need to recognize that “ a substantial chunk of the market that ’ s purchasing battery-powered equipment are commercial entities , like landscapers .” The report reminds dealers that battery-powered equipment can be more intricate and “ often requires specialized care , leading to potentially higher repair and maintenance costs . Dealers can capitalize on this by offering specialized repair services , thus boosting their revenue streams .”
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