The Rural Voice, 1989-04, Page 34MACHINERY
MACHINERY MACHINERY
DRIVING INTO THE 1990s
The Rural Voice
Farm Machinery and Equipment Questionnaire
How's business in the farm machinery and equipment industry?
To find out, common sense suggested that the dealers be asked to
speak for themselves. And they did, by responding to the
following questions:
1. How is 1989-90 shaping up?
2. What would you describe as the most notable changes or cost-saving
strategies in your business, whether the changes have been specific to you or
general adjustments in the industry?
3. What are the recent trends, innovations, changes or developments in farm
machinery and implements, and what special financing or other programs are
you offering or considering?
4. What trends or changes in buying patterns have you noticed recently?
5. What advice would you offer farmers in terms of equipment care?
6. What prognosis would you offer for the future of your industry? What
particular concerns or issues should be noted? Do you have any general
comments on matters you think the farming population should be aware of?
NAME: Joe Lobb
COMPANY: H. Lobb & Sons, Clinton
LINES CARRIED/PARTS MANUFACTURED: Gehl, Kubota, Massey- Ferguson,
Universal, Kongskilde, Hardi, Homelite, Yardman, OMC, etc.
OUTLOOK FOR 1989: New inventory is at respectable levels. Sales are up again over
1988. There has been a strong recovery in hay, forage, and manure -handling
equipment. There is an incredible interest and sales in round balers. Good, clean used
tractors are in excellent demand. The general outlook is good.
BUSINESS CHANGES AND ADJUSTMENTS: We have made adjustments in all
deparunents and are doing more work with fewer (but better qualified) people. We
have added the Challenger computer system. Inventory levels are now adjusted
seasonally (pre -season and early order programs allow for this). Consumer products
(lawn mowers, suing trimmers, lawn tractors) have increased our profile with non -
farming people. We have always been considered a parts and service dealership.
INNOVATIONS OR DEVELOPMENTS: Kubota continues to lead the way in 4WD
technology (they have now introduced a bi-speed front axle in their B Series tractors,
another first!). Gehl appears to be next as a hay and forage equipment leader. They
have introduced many exciting new products in 1989 — an excellent company with
many of the industry's best people working for them. Low interest rate plans are
trendy now!
BUYING PATTERNS: Buyers want less horsepower and 4WD in their new tractor (eg.
85 hp 4WD instead of 115 hp 2WD). They appear to be getting back to buying the
product instead of the price only.
EQUIPMENT CARE: Read your owner's manual! Keep in touch with your dealer! Tell
your neighbours if you like your product, but tell your dealer if you don't!
PROGNOSIS: Companies like Kubota and Gehl will only increase their market share
as a result of doing things right; the products will speak for themselves. Pricing is
always a concern; it has to remain competitive and fair. Off -shore manufacturing has
given us the most exciting equipment developments of the '80s. Amalgamations is
a pretty term for companies that have gone down the tubes and have been saved from
extinction by another company with money! Free trade is a debatable issue with a lot
of grey area. The only other comment I have is that farming is "a way of life," not
just a business. This is evident by the look on a farmer's face when his corn yield is
32 THE RURAL VOICE
135 dry bushels, when his steers top the
market, when he is honoured for his hard
work by his peers. "No farmer, no
future." Truer words have never been
spoken.