Mower Markets Keep Growing

"Unbelievable." "Growth year." "Outstanding," echoed the manufacturers of commercial mowing equipment. Of course, makers of zero-turning radius mowers praised 1997 as another year of robust sales. Manufacturers of other models, even walk-behinds, however, found strong niche markets to shore up sales.

Generally, the key to higher mower sales was the ever present market demand for higher productivity.

Bob Walker, president of Walker Manufacturing Co., Fort Collins, Colo., noted that recent mower sales trends have now flip flopped.

"In the recent past, the percentages of walk-behinds to riding units has always been about 60 to 40. With the zero-turning radius models, those numbers have turned around and, I think, will stabilize with the more flexible riding mowers getting up to maybe 70 percent of the market.

"The cross over from walk-behinds to riding mowers has been a result of two pressures," Walker continued. "First is the demand for greater productivity that all operators face. Second is the labor issue. There is the ability of riders to utilize a broader work force. The ideal operator for a walk-behind is a well-conditioned, 20-year-old male. Put a few years on him, or if he gets any physical problems, he can’t operate the unit as efficiently. With a rider, the operator can be retired or have some physical limitations and still be productive."

Dixie Chopper Sales Manager Warren Evans noted that, while zero-turning radius models were "an awful hard sell at first, as you get a greater percentage of the market with that type of mower -- no matter who brings one out -- it will do well. Zero-turn mowers are now more readily accepted now."

Evans said Dixie, Coatesville, Ind., had an "unbelievable" 1997. "Everyone was out of mowers. The pipeline was empty. We will produce 1,200 units next year. All but 400 of them have already been spoken for," he said.

Dick Tegtmeier, president of Encore Manufacturing Co., Beatrice, Neb., said his company also had a good year, but he cautioned that "the big bubble has gone through on the zero-turning radius models."

Jeff Alfaro, marketing manager for Excel, Hesston, Kan., said unique mowers like his company’s new Shortcut are targeted for the landscape contractor who must "address labor challenges and still be productive." He noted that the H-bar steering on the Shortcut, for example, eliminates much of the operator’s exposure to conditions which produce carpal tunnel syndrome."

"The Shortcut, introduced at the Outdoor Power Equipment Institute’s show in July, is versatile and can be used to pull a sulky or work as a riding machine.

"We were excited that transmission-steer models like ours saw some tremendous increases in popularity. We are as optimistic as OPEI for 1998. We expect to see double digits for the transmission-steer units for the year," he said.

WALKING THE WALK. Manufacturers agree, however, that there still is a place for the walk-behind mower in the commercial market. They cited the need for this type mower on hillsides and in smaller turf areas. In addition, as Tegtmeier noted, smaller landscape contractors will still be using the walk-behinds because they cannot afford the expense of buying a rider. One trend in the mower market seems to be turning. Although mulching mowers have been popular in most areas, Walker said his company has targeted a different market.

"We are selling a high percentage of grass catching machines. Some areas are going to mulching, but some people know how much mulching was oversold," Walker observed.

"The collecting of clippings and leaves hasn’t gone away. Many mowing companies in cool-season turfgrass regions are collecting heavy clippings in the spring when grass is coming out of dormancy. They switch to mulching when grass is slower growing in the summer, and switch back to collecting again with leaves in the fall."

Another way to grow commercial mower sales is the method Fred Goode, national sales manager of Bunton Company, saw with Bunton’s growth this year. As the acquisition and merger tendency continued to grow among manufacturers, some companies grew because of additional parent company support.

Bunton, now a division of Textron, "had a real good year," said Goode. "In commercial mowing equipment, we had an increase of 25 percent. Of course, we added new distribution with Textron. We expanded our market into the West and penetrated some markets we hadn’t been in before."

Goode said, "Bunton’s Twister, a mid-mount zero-turning-radius model introduced in September 1996, exceeded expectations with its 20-, 22- and 25-horsepower models."

In 1998, Goode said, the company will offer a derivative of the Twister with a liquid-cooled 31-horsepower engine and 72-inch deck size.

Productivity, again, is given as the key to better mower sales. "The largest expense for any contractor is labor. You increase productivity without increasing labor and you increase profit dollars," Goode observed.

Acquisition also played a role in Toro’s growth this year. Brian Masterson, marketing manager for The Toro Co., Bloomington, Minn., said Toro’s outstanding year was fueled by three joint ventures and the acquisition of Exmark. He emphasized that Exmark will continue to operate as an independent company.

Masterson noted that Toro introduced 27 new products last year and premiered a mid-mount rider, the Z250 with a low center of gravity, at the GIE show in November 1997. He said any improvements which can help productivity are good for the contractor and for the manufacturer.

"We want to help the contractors manage and grow their business. That’s what we’re here for," he said.

Masterson predicted that regulatory issues such as noise and emissions will be major concerns in the coming year.

Pete Officer, marketing manager for turf and grounds products at Woods Equipment Co., Oregon, Ill., agreed about the importance of these issues, especially as his company works with both the commercial and homeowner markets.

This concern for the broader industry picture is mirrored in the emphasis on support for dealers and operators by various companies, such as the John Deere Co., Raleigh, N.C. Gary Lindquist, manager of market development for commercial mowing and utility vehicles at Deere, said the slow, weather-related start in spring 1997 allowed his company to get dealers very involved in training, programs and sales activities.

"The industry seemed to recover, maybe not as fast as we expected, but it was a good year for us," he said.

The company introduced two new models of its Z-Trak zero-turning radius mower at dealer meetings in August. While these new models have greater maneuverability and increased serviceability with flip-up decks, Lindquist is quick to point out that Deere is developing more than just its product line.

"John Deere’s focused on providing the product, financing, parts and after-market support. We have a strong commitment to grow. Our objective is to continue to be a major player and a leader in this industry with manufacturing, product development and support to our dealers."

Lindquist said the company’s objective is to double its amount of business from 1996 by the year 2000.

"The majority of this growth will come from within John Deere. That’s very visible in our $30 million factory in Raleigh," said Lindquist.

When asked about the possibility of a John Deere acquisition to further move into the commercial turf market, Lindquist said, "It is possible that something could come from the outside." He said it is too soon to say more.

What about the number of players in the commercial mower market in the future? Many observers expect more acquisitions to be made to take advantage of economies of scale and to get product lines and distribution channels.

"It’s almost a thing of hysteria," Walker said. "It’s almost expected that all the small, independent companies will be swallowed up by the consolidated companies. We’re an independent company and we are determined to continue to operate that way.

"The pendulum swings and forces action in the other direction," he continued. "The desire to gobble up doesn’t always produce better progress. Sometimes it just doesn’t work as well as a company expects it to. Sometimes it produces stagnation in the industry."