April 28 -- Jacobsen's recent acquisition of Dixie Chopper
reflects the momentum the mower manufacturer has built in the turf industry
over the last several years. This success breeds confidence to do more
ambitious things in the turf market, says Jacobsen President David Withers.
In an exclusive interview with GCI, Withers, who has served as
Jacobsen's president since 2011, says in addition to strong brand recognition
and reputation in the turf market Dixie Chopper was an attractive target
because there was zero product overlap. The acquisition provided a unique
opportunity to cross-pollinate ideas.
"At Jacobsen, we’ve been developing hybrid and electric technology for years and these guys understand how rotary mowers interact with the grass in different conditions," he says. "[The move] enhances both products lines by the strength of each.”
"At Jacobsen, we’ve been developing hybrid and electric technology for years and these guys understand how rotary mowers interact with the grass in different conditions," he says. "[The move] enhances both products lines by the strength of each.”
In addition, while Jacobsen has a significant presence in the
North American golf market, in the international market that presence is more
split between the golf and municipal markets.
"This is where what we see the counter-cyclical nature of
the two sides coming into play," he says. "When the private sector is
doing well, quite often governments and municipalities spend less and this
happens in reverse where government spends more when the private sector is
struggling.
"Expanding our portfolio into municipal markets protects us
when one of the two sectors goes into a downturn and gives Jacobsen more
stability long-term and allows us to compete with our competitors on a broader
base," Withers adds. "Today, we only compete with John Deere and Toro
in the golf segment and this allows us to now complete in the commercial and
landscape markets as well.”
From a market perspective, it appears parent company Textron has
refocused its investment on Jacobsen. Withers concurs, adding that Jacobsen's
success in the golf market has proven it can grow and expand its market presence.
"Every company is in either an upward spiral or a downward spiral," he says. "You’re either spending less, cut people and guess what, you sell less. We’re in an upward spiral, we’re making good profitability, moving the business forward and therefore you invest more into new products and better service to customers and they tend to reward you for that and that in turn leads to more sales."
"Every company is in either an upward spiral or a downward spiral," he says. "You’re either spending less, cut people and guess what, you sell less. We’re in an upward spiral, we’re making good profitability, moving the business forward and therefore you invest more into new products and better service to customers and they tend to reward you for that and that in turn leads to more sales."
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