Tracking industry trends and learning from thought leaders is always wise, especially as a new season nears. Equipment dealers are constantly on the lookout for ways to improve both their bottom line and enhance customer relationships. I’m always on the lookout for insightful leaders. Being able to understand and intelligently discuss important issues in the customer’s world can go a long way in ensuring continuous improvement in both of those facets of the equipment business. 

Reading various industry trade magazines as I often do, I recently came across an interesting article that seems to speak volumes to dealers in these trying times. In it, Jeffery Scott, author of “Destination Company,” shares his decades of expertise helping (primarily landscape management) businesses. His forecasting and financially-focused words seemed highly applicable to rural lifestyle  equipment dealers.

With gratitude to Scott, a New Orleans, La.,-based industry consultant who has successfully helped businesses bolster their success for decades, here are seven long-term industry trends — and actionable insights — he recently identified in a Landscape Management online article. As they are definitely applicable to equipment dealers, a summary of his thoughts and quotable quotes worthy of note are shared here.

1. Sustainability. Scott notes that harsher, chaotic weather is creating the need for restorative services, along with better stormwater management, tree services, etc. Additionally, the significant trend of battery power will continue to grow, he offers, beyond robotics, as he contends electrification will have a far-reaching impact this decade. 

“Make sure your leadership team anticipates these changes,” urges Scott.

2. Technological Integration. With increasing options available to automate processes within a company, ease of doing business remains a top priority for clients and employees. 

“If you can marry these two sets of needs, you will have stellar results,” says Scott. To that end he adds, “Make a two-year onboarding plan for new technologies to keep you non-reactive, but update it quarterly so you stay current. Most companies underutilize their current tech, so task someone with ensuring you maximize utilization.”

3. Workforce Development. “The workforce challenge will not be eliminated with automation or immigration, so it’s important you become the employer of choice in your market,” contends Scott. In “Destination Company,” he focuses on the need for business owners to reframe their mission. In doing so, he encourages them to embrace the mindset that the company is a people-development business with certain expertise. 

“Nurture a training mindset and methodology to upskill your team. Technology will help, but not without investing in both trainers and other resources. Don’t let pay become a stumbling block. Better employees pay for themselves.”

4. Financial management. “Know your numbers, but don’t stop there,” urges Scott. Focusing on the importance of staying nimble, he notes that with so much in the landscape industry — surely the case in ag equipment — has been in a state of flux, including costs, demand, supplies, competition, etc. To keep the business strong, he recommends two key steps. One is to revisit pricing, capacity and cost assumptions quarterly, writing, “Develop your own executive scoreboard to stay on top of your metrics.” Next, he adds, “Have one person review all your purchases throughout the year and negotiate from that annual vantage point.”

5. The Leadership Advantage. Another nugget of wisdom Scott offers strikes at the core of any growth-minded company.

“The companies with the best leaders win,” says Scott, adding, “The key is having people who can grow as your company grows. This requires you to think bigger when making your next hire. Don’t be afraid to look outside the industry for great people with a growth mindset. It’s these fresh minds that will change our industry.” Having seen companies who have succeeded greatly and others who have struggled sorely with leadership decisions, on this I couldn't agree more. 

6. Acquisition Mania. Among many ways he and his team at Jeffrey Scott Consulting support landscape dealers and other small businesses has been helping owners sell their companies for high value and also help companies who do the acquiring.

“The compelling benefit of acquisitions is that you can grow your enterprise value in multiple ways,” says Scott. He adds, “When you buy a smaller company for X, for example, it can become worth +/- 2X as part of your larger company, assuming you have a well-run company that can take advantage of the synergies. Also, the realized acquisition cost decreases as you increase the revenue (and contribution) from the new client base and sales funnel.”

His pro tip on this issue is concise: “Only buy from owners (sellers) that align with your values. Otherwise, you may buy a surprise problem you had not counted on.”

7. Retire in Place. Scott notes this growing trend as an option to sell the business. To that, he offers this: “2025 is going to be chaotic and high growth. Be prepared for both. This requires a great infrastructure and a super leadership team working well together, one that won’t drop balls when you’re ready to pivot.”

Here’s to the spring countdown and helping businesses up their game during a year certain to bring unique challenges and opportunities.