MARKET DATA
The New Unit Sales category showed mixed results , with 30 % rating this as Subpar and nearly 40 % calling it Average .
What Provided Growth ?
We asked : What line of business provided you with the largest growth in Q2 ?
Battery-powered equipment and zero-turn mowers tied for the most common answer to the “ growth ” question . Battery equipment is a regular to the top ranking in this question . Stand-on mowers scored high here . And the robotic mowers category made its first appearance above 5 % in this growth category . The “ No Growth ” response is also a high-ranking answer for this question , meaning some respondents did not experience growth in this quarter .
Business outlook ?
We asked : Based on how you feel today and the end of Q2 , where do you expect year-end 2024 company revenues will end up compared to 2023 ?
The outlook is improving compared to Q2 survey data in 2023 , though the complete response is mixed . A total of 46 % percent expect revenue to be up at year-end , compared to 29 % of dealers who said the same in Q2 2023 . Still , nearly as many – some 40 % – expect revenue to be down at the end of the year .
And they ’ re working harder for each sale . Nearly a third of dealers expect profit margins to be worse than last year .
External Risk Factors
We asked : Which of the following external risk factors are you more concerned about ? ( Dealers could choose multiple responses .)
In this Q2 survey , the concern dealers have about consumer financing is slowly waning , with 36 % percent noting they are “ moderately concerned ” about the cost of money ; that ’ s down from last year and from Q1 survey this year .
Price inflation and the U . S . political environment remain causes for concern among OPE dealers , though those concerns are also moderating for dealers . Dealers are also less concerned with political issues outside the U . S . Overall , a mix of “ concerns ” but none can be singled out as truly concerning . And coronavirus ? The symptoms of that are waning for dealers .
Current Inventory Level ?
Most dealers seem content with inventory levels at this point in the year . More than 60 % feel that inventory is “ just right ,” compared to less than 50 % who said the same in Q2 2023 . One third of dealers responded that inventory is too high , compared to more than 40 % who said “ too high ” last year at this time .
30.0 %
25.0 %
20.0 %
15.0 %
10.0 %
5.0 %
0.0 %
70.0 %
60.0 %
50.0 %
40.0 %
30.0 %
20.0 %
10.0 %
0.0 %
BUSINESS OUTLOOK : HOW DO YOU ANTICIPATE YOUR COMPANY ’ S YEAR-END REVENUE WILL COMPARE TO LAST YEAR ’ S REVENUE ?
3.3 %
Up 20 % or more
16.7 %
Up 10-20 %
26.7 %
13.3 %
16.7 %
20.0 %
Up 1-9 % |
Flat |
Down 1-9 % |
Down |
|
|
|
10-20 % |
CURRENT INVENTORY LEVEL : HOW WOULD YOU CHARACTERIZE YOUR CURRENT EQUIPMENT INVENTORY LEVEL ?
63.3 %
30.0 %
6.7 %
About right Too high Too low
3.3 %
Down 20 % or more
Source for all charts : OPE +
www . OPE-Plus . com September 2024 OPE + 11