GE Capital Survey Says Successful Selling Season Leads to Positive Sentiment in Lawn and Garden Industry

November 18 -- Lawn and garden industry participants are inclined to stock up on new low-cost models based on a positive summer selling season, according to survey results released today by GE Capital, Commercial Distribution Finance (CDF).

Fifty-four percent of industry participants said the popularity of lower-cost models will have the largest impact on sales this year, compared to 43 percent last year. One quarter said reduced levels of inventory will impact sales, down one percentage point from last year. Only seven percent pointed to long production lead times impacting sales, down from 20 percent.

“Pent-up demand for machines may have driven both consumer and commercial sales this year,” said Michael Horak, commercial leader of CDF’s outdoor products group. “Dealers have told us they feel good about the recent selling season and, based on current conditions, they’re planning to order more new equipment for next year.”

In fact, nearly half (49 percent) of respondents said this is a good time to consider re-stocking, up from 40 percent last year. About one-third (34 percent) had mixed feelings, down from 40 percent.

Respondents were generally optimistic about sales trends next year, as well. Thirty-eight percent said their sales would grow 5-10 percent; 23 percent said 10-15 percent; and 23 percent said 15 percent or more.

“From the inventory financing point of view, we’ve seen strong liquidations and ‘outstandings’ have been reduced to levels equivalent to this time last year,” Horak added. “At the same time, inventory turns have increased to a very healthy level.”

The lawn and garden industry survey was conducted Oct. 23–25. The 164 respondents were composed of retailers and dealers (27 percent); manufacturers (23 percent); distributors (15 percent); and other industry participants (35 percent).

For more than 20 years, CDF has played an important role in the green industry. Inventory financing, also known as floorplan financing, enables dealers to stock, market and sell lawn care products. Manufacturers generally benefit from enhanced product flow and increased sales opportunities, while dealers can obtain improved credit availability and terms.

To learn more about the ways CDF helps customers manage their inventory and access exclusive industry intelligence, dealers can speak with a CDF representative by calling 800-451-5944 or visiting the web site: http://www.gecdf.com/home.

About GE Capital, Commercial Distribution Finance

GE Capital, Commercial Distribution Finance provided nearly $31 billion in financing for more than 33,000 dealers and 2,000 distributors and manufacturers in the U.S. and Canada in 2012. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management and related financial products. For more information, visit www.gecdf.com/ or follow company news via Twitter (www.twitter.com/GEInventoryFin

GE Capital Offers New Quarterly Research Paper on OPE Equipment Industry

HOFFMAN ESTATES, Ill., Feb 27, 2012 -- GE Capital, Americas has launched a new quarterly Industry Research Update for the lawn, golf and turf equipment industries in advance of two important industry events, the Outdoor Power Equipment and Engine Service Association (OPEESA) Annual Meeting taking place Feb. 26-29 in Phoenix, and the Golf Industry Show (GIS) taking place Feb. 29-March 1 in Las Vegas.

GE Capital will be actively participating at both events. Additionally, OPEESA attendees are invited to hear Micki Turner, a human resources director with GE Capital, speak about ownership succession planning on Monday, Feb. 27, 10:15 AM-noon. That will be followed by a panel discussion with industry leaders.

The initial research report shows that the outlook for these industries is increasingly positive. "From a macro point of view, general economic and consumer indicators are steadily improving, though from weak levels," said Serena Tse, a senior vice president and industry research manager with GE Capital. "Due to the mild winter weather in the Northeast, inventory turns have accelerated and financing volume is growing."

The full Lawn, Golf & Turf Equipment Industry Research Update is available here: 

http://www.gelending.com/CDF/DealerExclusiveNewsletter_02-20/docs/Golf_Turf_Update_1Q12.pdf            

         

GE Capital, Americas provides inventory and retail financing that allows lawn, golf and turf dealers to stock, market and sell a wide variety of equipment and related products from manufacturers. Inventory financing, also known as floorplan financing, is an important element of a successful manufacturer-dealer business model. In addition, GE Capital's turn-key financing program helps get equipment into consumers' hands and offers dealers robust online account management tools.

GE Capital to be Exclusive Provider of Briggs Power Products Inventory Financing

HOFFMAN ESTATES, Ill., Jul 20 -- GE Capital, Commercial Distribution Finance (CDF) today announced that it will become the exclusive provider of floorplan financing for Briggs and Stratton Power Products Group LLC (BSPPG) in the U.S. and Canada.

Headquartered in Wauwatosa, WI, BSPPG offers residential and outdoor power equipment under the Simplicity, Snapper, Massey Ferguson, Snapper Pro and Ferris brand names. Parent company Briggs and Stratton Corp. also manufactures and markets GE-branded standby generators under a separate licensing agreement.

"Floorplan financing is an important element of a successful dealer business model, and GE Capital provides a long-term solution for lawn and garden dealers to stock and market outdoor power equipment," said Harold Redman, senior vice president of Briggs & Stratton and president of Briggs & Stratton Power Products Group.

"We are very pleased to have been chosen by BSPPG, and we look forward to providing exceptional service and innovative financing to meet the needs of their dealers," said Marvin Solomon, managing director of CDF's strategic industries group. "Our team is eager to work together with our new client to develop financing programs that are right for their dealer customers."

GE Capital is Agent To Blount for $425 Million Credit Facility

NORWALK, Conn., Aug 20, 2010 -- GE Capital, Corporate Finance today announced it is administrative agent for a $425 million cash flow credit facility to Blount International, Inc., a leading outdoor products manufacturer.

The loan amends and extends an existing $165 million facility and will be used to refinance debt and for acquisitions. GE Capital Markets served as sole lead arranger.

Headquartered in Portland, OR, Blount International, Inc. is a global manufacturer and marketer of replacement parts, equipment, and accessories for the forestry, lawn and garden, and outdoor power equipment sectors, and is the market leader in manufacturing saw chain and guide bars for chain saws.

"For over seven years now GE Capital has helped finance our growth with significant financial commitments," said Josh Collins, chairman and chief executive officer for Blount International, Inc. "Expanding our existing facility allows us to lower our overall cost of capital and supports our growth strategy."

"Meeting the evolving capital needs of manufacturers is our specialty," said Tom Quindlen, president and chief executive officer of GE Capital, Corporate Finance. "Deep industry knowledge, expert loan structuring and the ability to commit large amounts of capital leads to smarter liquidity for borrowers."

Funding in part was provided through GE Capital, Corporate Finance's bank affiliate, GE Capital Financial, Inc.