CHICAGO, Nov 5, 2014 - Lawn and garden companies are feeling optimistic about 2015, according to a survey conducted by GE Capital, Commercial Distribution Finance (CDF). Twenty-two percent of respondents think sales will grow 15 percent or more, with an additional 22 percent expecting growth between 10-15 percent and 38 percent expecting growth between 5-10 percent.
This optimistic mindset leads to 46 percent of respondents thinking now is a good time to stock more inventory for 2015. “Although some segments like mowers had a slow start this year, inventory overall is turning at a strong pace,” said Mike Horak, president of CDF’s outdoor products group. “The confidence reflected in these results means that dealers want to stock inventory now in anticipation of steady demand.”
Over half (51%) of survey respondents felt the popularity of lower cost models was the biggest trend in the industry this year. Limited new model introductions (17%), long production lead times (15%) and reduced levels of inventory (14%) in 2014 were other notable trends of the year.
“The lawn and garden industry is correlated to consumer confidence. Although it is rising slowly, there is still price sensitivity and it is no surprise that lower cost models were popular this year,” said Horak.
GE Capital’s survey was conducted Oct. 23-25, 2014 at the annual Green Industry & Equipment (GIE) Expo in Louisville, KY. Of the 176 respondents, 37 percent were dealers or retailers; the remainder was manufacturers, distributors and others. Read more about CDF’s view on the lawn and garden industry here.
About GE Capital, Commercial Distribution Finance
GE Capital, Commercial Distribution Finance provided $34 billion in financing for more than 30,000 dealers and more than 3,000 distributors and manufacturers in the U.S. and Canada in 2013. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management and related financial products. For more information, visit http://www.gecdf.com/ or follow company news via Twitter (http://twitter.com/GEInventoryFin).
GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com.
Tara Lambropoulos
GE Capital
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