Seizing Opportunity

Here at Power Equipment Trade we’ve repeatedly noted the trend of dealership owners skewing older and the impact that will have on the dealer base. It’s another dynamic that affects the dealership “churn” that’s always been there as power equipment businesses startup, rise and fall, expand and grow or simply fade away and disappear: In general, when a dealership churns through a transition and remains intact, it’s usually either a family member, staff member or new owner who takes the reins and seizes the opportunity the churn has wrought.

Dealer Keith Stephens, owner of Stephens Garage highlighted in this issue, is a great example of doing just that in his career: A GM-certified mechanic working at an auto dealership, he grabbed the opportunity to rent the service area and start his own auto service center business after the dealership vacated the building. After acquiring the building he later went into the lawn and garden business after his late wife noticed the customer traffic at a local dealership that closed. The result is a dual-sided business that’s busy as an anthill as it serves both automotive and lawn and garden customers. And just last year, Stephens started a new dealership in a much larger community 20 miles away, home to a mid-sized public university and located at the split of a major U.S. highway that connects Alabama to the gulf side of Florida. After a longtime, well-respected dealership there closed, the market had a need for service capacity and premium equipment sales. Again, Stephens is seizing opportunity.

The pages of Power Equipment Trade are full of such stories, men and women in the right place at the right time who’ve seized opportunities, taken over for family, bought out their bosses or just decided it would be a cool business to own and operate. That’s a large part of what PET does: Showing how owners and operators in this industry have made the most of their opportunities, and how readers may apply some of that information to seize the opportunities they have in their own businesses.

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And while it may be fashionable these days as independent businesspeople to go on and on about how no one wants to work and lament the scourge of supply chain issues and labor pains, the opportunities are there, as Stephens and many others have shown. In most any market, there’s always an opportunity for premium power equipment represented well and serviced quickly and accurately the first time. It’s just a matter of seizing it.

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Stihl Expands Manufacturing

The City of Virginia Beach has announced that Stihl plans to invest $49 million to expand its chain saw guide bar manufacturing facility. The expansion will add 26,000 sq. ft. of space to an existing building, totaling 86,000 sq. ft. upon completion. The project is also expected to create 15 new jobs with an average annual wage of $60,000 to $100,000.

The Virginia Beach Development Authority (VBDA) voted to award Stihl an Economic Development Incentive Program (EDIP) grant of $500,000 for the expansion based on job creation and retention, plus capital investment estimated at $49 million. In addition to increasing its footprint in Virginia Beach, Stihl plans to invest in state-of-the-art equipment and add highly skilled positions to its team, including maintenance mechatronic technicians, process engineers, tool and die makers, project coordinators, and machine operators.

For nearly 50 years, the City of Virginia Beach has created an ideal environment for Stihl to continue to grow our business and offer meaningful careers to over 2,500 current employees in Hampton Roads,” comments Terry Horan, President of Stihl Inc. “We are incredibly proud to be able to continue to expand our Virginia Beach-based manufacturing operations to fulfill the increased demands of our more than 10,000 loyal Stihl dealers nationwide and their customers.”

What started as a 20,000 sq. ft. manufacturing facility has grown into a 150acre campus with 2 million sq. ft. of combined industrial and office space. The new project will allow for a third chain saw guide bar production line to be added, increasing production capacity. Currently, most chain saw guide bar production takes place at other Stihl locations overseas, but this expansion lays the groundwork for additional manufacturing activity to be moved to the company’s Virginia Beach location.

Positec Corp. Names Jones President & CEO

Positec Tool Corp., manufacturer of lawn, garden and power tools under the Worx, Rockwell, Kress and Cat brand names, has announced that Michael A. Jones has been appointed to the position of President and Chief Executive Officer (CEO) of Positec North America, effective November 30, 2022. Previously, Jones served as Executive Vice Chairman for Ranpak Holdings Corp.

“With decades of experience in domestic and international sourcing, as well as sales and service excellence across a broad range of consumer and professional-grade goods, Michael comes to Positec at a time of tremendous product innovation and portfolio growth,” states Ben Dalziel, Group Executive Vice PresidentSales and Marketing, Executive Member of Positec’s Corporate Board. “Michael’s ability to drive business excellence is second to none, and we are delighted to have him guide Positec’s strategy and operations at this important moment in our company’s history.”

Beginning his career as a longtenured executive with General Electric, Jones served as Chief Commercial Officer–Europe, while living abroad in Budapest, Hungary with his family for GE’s European Lighting, Appliance and Power Control business, serving Europe, Middle East and Africa. He then became President for Husqvarna AB’s North and South American business operations, followed by executive roles with Lowe’s Companies, Inc.

“Together with the Board of Directors, I share tremendous optimism for Positec and its category-leading brands,” says Jones. “The founder, Don Gao, and his global leadership team—with best-inclass R&D and proven brand-development capabilities—have built a powerhouse portfolio of innovative products, and I sense tremendous potential for growth in the coming years.”

Stens To Close Indiana Footprint

Arrowhead Engineered Products has announced Jasper, Ind.-based Stens would close later this year and be incor- porated into the newly constructed distribution warehouse in Portland, Tenn. According to Arrowhead, the transfer will likely be complete by the early fall of 2023. The move impacts 150 employees at Stens.

The warehouse staff is around 70, and they are all being offered relocation, according to the company.The remaining office staff will go fully remote. The move is being driven by Arrowhead and an internal review of the distribution network, showing a new mega-facility was needed to serve the company’s growing customer base and support and expand the hub and spoke distribution model.

The newly constructed 540,000 sq. ft. warehouse and distribution center in Tennessee will create nearly 400 full-time job opportunities at the new facility when it opens in July 2023.

Jim and Charles Stenftenagel opened Stens in a one-room garage servicing power equipment in the 1979s. By 1983, Stens shifted its focus to the replacement parts market. After the Ariens Co. purchased Stens, they grew it to eight distribution centers across the U.S. and moved into the current distribution center and headquarters. Arrowhead Engineered Products acquired Stens in 2016.

The building housing the current Stens headquarters and warehouse in Jasper will revert back to the owner at the end of the lease in December.

HBS Systems, Kenect Announce Partnership

HBS Systems, a provider of web-based equipment dealership management solutions has partnered with Kenect, a texting platform for equipment dealers, to enhance communication efficiencies.

This partnership will provide dealers utilizing HBS Systems’ NetView ECO equipment dealership management solution with an even more robust communication platform to increase efficiency, strengthen customer satisfaction and maximize revenue. The integration will allow dealers to text their customers from their existing business phone line. Messages can be assigned to team members, set up auto-responders, schedule appointment reminders, attach files, invoices, videos, and more.

“As the number of consumers who in- dicate texting as their preferred method of communication with dealerships continues to increase, especially in the service and rental departments, we’re proud to provide additional options,” says Chad Stone, President and CEO, HBS Systems. “Our team is constantly working to provide an open API to easily bring partners into the HBS Systems NetView ECO software ecosystem.”

Yanmar Announces Expansion Plans

Yanmar Compact Equipment North America (Yanmar CE NA), encompassing the Yanmar Compact Equipment and ASV brands, announces plans for a 32,000 sq. ft. expansion to its Grand Rapids, Minn. facility. The newexpansion and a subsequent paint system will increase paint capacity by up to three times with maximum automation and allow a parts manufacturing capacity increase of up to two times in the previously occupied space. This project sets the stage for future capacity increases with company officials projecting the addition of hundreds of full-time posi- tions over the next five years.

The new paint system will be more efficient, have less environmental impact, and convert a liquid paint process to a powder coating system with more paint capacity for a higher production rate. The relocated paint system will allow the space previously occupied to be outfitted with robotic weld cells and cutting tables, optimizing plant flow. The company expects to break ground in the spring of 2023 on its expansion with a target for completion in 2024.

Equip Exposition Celebrates Anniversary

Following record-setting attendance, hotel bookings and sell-out of exhibit space last year, Equip Exposition in 2023 will expand on its success by offering new, advanced education, additional entertainment and events including a new arena concert, expansion into the West Wing of the Kentucky Exposition Center (KEC), and improved logistics and food options.

Show attendees each year gain access to the latest equipment, technology and software, as well as education and connection with their peers. “But they should also expect new and improved experiences,” says Kris Kiser, President, Outdoor Power Equipment Institute, who owns Equip. “So when attendees speak, we listen. Our philosophy is ‘same show, new show, every year’.”

Equip Expo will be held October 1720, 2023.

A sneak peek into the new 2023 show experiences being planned include:

A new arena concert at the Yum! Center featuring headline band, Third Eye Blind

Return of the New Product Showcase Welcome Party at the downtown Kentucky International Convention

Center (adjacent to the downtown Marriott and Hyatt hotels) with a concert from Expo house band, The Crashers

An “adventurous” keynote speech by Polar Explorer and master storyteller Ben Saunders who completed the longest-ever polar journey on foot

The debut of the Equip Exposition Equipment Museum to showcase the evolution of the industry

The addition of a business lounge, meeting spaces and expanded seating areas at the KEC

Landscape education for young people sponsored by the TurfMutt Foundation. Children ages 12 and up may attend the show

Improved shuttle bus, rideshare and transportation logistics

More coffee shops and food offerings on-site, including breakfast options

Fan favorites also will return to the 2023 Expo, including can’t-miss education and connection events for dealers, Mulligan’s Fun Run & 5K, the UTV Test Track, the Drone Zone, and Mulligan’s Mutt Madness, a national dog adoption event, sponsored by the TurfMutt Foundation.

“For those who attended our ‘22 show, you may have noticed TV cameras shooting episodes of Lucky Dog and Mission Unstoppable, both television shows on CBS,” says Kiser. Look for the shows to be aired early this year in February, March and April. “Also, expect the return of the television show’s presence at Expo,” he said.

The TurfMutt Foundation, which has sponsored Lucky Dog and Mission Unstoppable shows for several years, is the education arm of Equip Expo and the Outdoor Power Equipment Institute.

Last year, Equip Expo attracted more than 25,000 attendees who hailed from all 50 states and 49 countries, with the furthest traveling attendees journeying from Guam, New Zealand and Australia. Equip Expo 2022 also was the largest show in its 40-year history.

Registration opens for Equip Exposition 2023 in April. “We sold every inch of both indoor and outdoor exhibit space last year, and, in fact, had a waiting list,” says Kiser. “I encourage anyone seeking to participate in this year’s show to act quickly. In fact, book your hotel room early. If you’re going to fly, book it