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FARM EQUIPMENT DEALERS REPORT STRONG SALES IN 2021
Feb. 22, 2022
By Ben Thorpe, Farm Equipment magazine
The latest Cost of Doing Business study reported increased revenue and profit, as well as improving gross margins dollars on parts, service and wholegoods in 2020.
North American dealers reported strong financial results for 2020, according to the results of the latest Cost of Doing Business study from the Western Equipment Dealers Assn. On average per location, revenue, profit and gross margin dollars were all up. Absorption rates were up for parts and service and return on both assets and equity reached 5-year highs. However, when broken down by dealership size, those dealers with sales between $25-$75 million fared slightly worse than other dealers in some areas, including declines in revenue, gross margin per employee and equity as a percentage of total assets.
The 2021 study covers responding dealers' metrics from 2020, and averages are reported on a location basis. Results from Canadian dealers were converted to USD when results were compiled. The results were analyzed in a recent Farm Equipment webinar by Curt Kleoppel, WEDA's CFO and president of Equipment Dealer Consulting and Gord Thompson, WEDA subject matter specialist, Dealer Institute Management consultant and former dealer principal, who broke down the nuisances of the data for dealers.
Participating dealers had from May until August 2021 to submit their data. Results were then compiled, analyzed and presented in October 2021. Other associations who worked with their dealer members to contribute data for the 2021 report are the Deep Southern Equipment Dealers Assn., Midwest-SouthEastern Equipment Dealers Assn., Northeast Equipment Dealers Assn. and United Equipment Dealers Assn. Dealers who are interested in the full report and the region specific results can order them through their regional association.
To view the complete report, click here.
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