OPEI 07-2023 quarterly report

Equip Exposition is the annual event dedicated to growing landscapers’, hardscapers’, manufacturers’, and dealers’ businesses. 

QUARTERLY REPORT Summer 2023

PRESIDENT’S LETTER As I write this, we have just wrapped up our 70 th Annual Meeting, celebrating seven decades of the association and our membership coming together to support and enhance the industry. The meeting was an opportunity to share the positive state of the association and our Equip Exposition trade show. OPEI staff continues to engage on many legislative and regulatory fronts, including efforts in California to restrict or ban engine equipment. OPEI staff have also worked closely with our partners at the Texas Nursery and Landscape Association and the Georgia Urban Ag Council on similar efforts at the state level. The association’s safety standards work continues as well, and our staff efforts before the Consumer Product Safety Commission continue to show- case the work OPEI members do to ensure safe products on store shelves.

OPEI President Kris Kiser, left, with Pulitzer Prize-winning author Jon Meacham, who gave a keynote speech at the OPEI Annual Meeting on leadership lessons from the American presidency.

As we look toward October and the 40 th Equip Exposition, we can report the 2023 show is seeing record levels of exhibitor and sponsor support and looks to be another record-setter for

attendance. With new programming and a first-ever arena concert at the KFC Yum! Center downtown, it’s sure to be a can’t-miss experience. I hope I’ll see you there. – Kris Kiser

opei.org | 1605 King Street, Alexandria, VA 22314 | 703-549-7600 equipexposition.com | 209 E. Main St., Louisville, KY 40202 | 502-536-7050

OPEI HOSTS 70TH ANNUAL MEETING, NAMES 3 NEW BOARD MEMBERS The Outdoor Power Equipment Institute held its 70 th Annual Meeting in June at the Omni Grove Park Inn, Asheville, N.C. Nearly 150 attendees gathered for the event, where the asso- ciation announced three new Board members and named a new Board chair. “This year’s event has been a great example of the power of an association. For 70 years, OPEI has given our members a forum to address the challenges and opportunities facing the industry,” said Kris Kiser, OPEI President. “This year’s An- nual Meeting was one of our most successful, and an oppor- tunity to share the positive state of the association and trade show. On the heels of our largest Equip Expo ever, we were able to report the 2023 show is seeing record levels of sup- port, and looks to be another record-setter for attendance.” The meeting featured a slate of keynotes addressing prac- tical topics of leadership, the economy, and business trends, including Economist Alan Beaulieu, Ford Motor Co. Chief Fu- turist Sheryl Connelly, and Pulitzer Prize-winning Presidential Historian and Author Jon Meacham.

OPEI staff also presented updates on regulatory engage- ment, expansions at Equip Exposition, and new programming at the TurfMutt Foundation. The OPEI Board of Directors met concurrently with the Annual Meeting, approving the association’s budget, new Executive Committee, and work plans for the coming year. The association announced three new Board members: • Klaus Hahn, President North America, Greenworks • Harold Redman, President and CEO, Echo Incorporated • Nelson Wilner, Senior Vice President and General Manager, Engines, Kawasaki Motors Corp. USA The association’s new executive committee comprises: • Chair: Mike Clancy, CEO Chervon North America • Vice Chair: David Thorne, Vice President, Turf & Compact Utility Business Unit, Deere & Company • Secretary/Treasurer: John Wyatt, Senior Vice President and President of Outdoor, Stanley Black and Decker • Immediate Past Chair: Brian Melka, Group President – Kohler Energy • Equip Exposition Show Chair: Dan Ariens, Chairman and CEO, Ariens Company

QUARTERLY REPORT Summer 2023

Rounding out the Board of Directors are: • Steve Andrews, President and CEO, Briggs & Stratton • Peter Hampton, President and CEO, Active Dynamics • Terry Horan, President and CEO, STIHL Inc. • Matt Nuijens, President — Residential NA, Husqvarna Forest & Garden Division • Rick Olson, Chairman and CEO, The Toro Company • Lee Sowell, Techtronic Industries Power Equipment Planning for the 2024 OPEI Annual Meeting, slated for Ponte Vedra Beach, FL, is underway. Contact association staff with ideas for speakers or programming. New OPEI Board Members From left: Klaus Hahn, President, North America, Greenworks; Harold Redman, President and CEO, Echo Incorporated; and Nelson Wilner, Senior Vice President and General Manager, Engines, Kawasaki Motors Corp. USA

EQUIP EXPO EXPANDS, OPENS WEST WING FOR EXHIBIT SALES IN 2023 Equip Exposition will now offer exhibitor space in the West Wing of the Kentucky Exposition Center (KEC) for the trade show being held Oct. 17 to 20. Due to high demand from exhibitors, especially those with limited booth space in other areas of the KEC, this additional space allows for new and waitlisted exhibitors, as well as existing exhibitors, to expand their presence at the show. “Our usual footprint for indoor exhibit space is completely sold out,” said Kris Kiser, President of the Outdoor Power Equipment Institute, which owns and manages Equip Exposi- tion. “And while the West Wing is different – it’s been used for a wide range of purposes – it does allow existing exhibitors to showcase more of their products and in particular indoor demonstration areas. Taking space in the West Wing also allows new exhibitors to get into the show and ‘get in line’ for space that could become available in other areas of the KEC.” Last year, all available exhibitor spaces in the KEC and ev- ery inch of the available 30 acres in the Outdoor Demo Yard sold out; Expo expects the same situation for 2023. The historic West Wing of the KEC offers 170,000 square feet of additional indoor exhibit space and is the last remaining unused area at the KEC for Equip Expo. It is one of the facility’s original structures and located west of Freedom Hall. In addition to exhibits, the West Wing will feature the return of the popular New Product Showcase, the Drone Zone, and a business lounge for exhibitors and attendees during the show. Hardscape North America will also be expanding its exhibit space into the West Wing.

Save the Date The Outdoor Power Equipment Institute’s 2024 Annual Meeting will be held June 24-26 in Ponte Vedra Beach, Florida. Details on registration and programming will be forthcoming.

REGISTRATION OPENS FOR EQUIP EXPOSITION The industry’s largest trade show marks its 40 th anniversary with an arena concert, advanced education, exhibit area expansion, and more. Equip Exposition has opened registration for the 2023 tradeshow, held Oct. 17-20 at the Kentucky Exposition Center. “Equip Exposition is the experience of the year for any- one in the landscape, hardscape, outdoor living, and power equipment business,” said Kris Kiser, President of the Outdoor Power Equipment Institute, which owns and manages the trade show. “Last year we saw a sold-out exhibit hall and brought more than 25,000 people to Louisville. As we cele- brate 40 years of Expo together, it’s going to be a can’t-miss event.” Early-Bird discounted registration is available until Sept. 7. Attendees can register to attend for as little as $25 per person. Learn more at www.equipexposition.com/attendee. Last year, Equip Expo broke records and attracted more than 25,000 attendees who hailed from all 50 states and 49 countries, with the furthest traveling attendees journeying from Guam, New Zealand, and Australia. The show brings over $20 million in revenue to Louisville, and books more than 32,000 hotel rooms during show week. Equip Exposition hotel reservations are open and mak- ing plans early on where to stay is strongly encouraged. Twenty-six hotels are already sold out, and several more are nearing capacity. Hardscape North America continues to co-locate with the show, offering hardscape demonstrations, exhibits and educational opportunities.

5TH ANNUAL MULLIGAN’S MUTT MADNESS DOG ADOPTION EVENT RETURNS TO EXPO 2023 Equip Exposition is once again “going to the dogs.” The 5 th Annual Mulligan’s Mutt Madness pet adoption event, orga- nized by the TurfMutt Foundation in partnership with Equip Exposition and the Kentucky Humane Society, will take place at the 2023 tradeshow. “We’re celebrating our 40 th annual Expo, and over the years Mutt Madness has matched more than 50 dogs with Expo attendees, the people who create the yards that pets and their people enjoy,” said Kris Kiser, President of the Out- door Power Equipment Institute, which owns and manages the trade show. “I adopted Mulligan the TurfMutt at Mutt Madness a few years ago, so I know firsthand the benefits of bringing dogs needing forever homes together with the fami- lies and attendees of Expo. We’re excited to see the matches that are made at this year’s Mutt Madness.” Alisa Gray, President and CEO of the KHS added that the impact of the partnership with TurfMutt reaches beyond the Mutt Madness event itself. “Mutt Madness not only helps match people to pets needing homes, it also shines a light on pet adoption in general, which has had a positive ripple effect for the KHS. The addition of Mulligan’s 5K Fun Run & Walk over the Big Four Pedestrian Bridge is another way that TurfMutt helps raise funds for our efforts.” Nearly 200 people participated in the inaugural Mulligan’s 5K Fun Run & Walk in 2022, which spans the Ohio River on the city’s Big Four pedestrian bridge. The 2023 event, which is once again powered by Ariens, will be held on the open- ing day of Expo on Oct. 17, stepping off near the city’s iconic Louisville Slugger Field.

QUARTERLY REPORT Summer 2023

Outdoor Power Equipment Institute Market Statistics

OPEI RELEASES SUMMER STATISTICS FORECAST OPEI has released its summer forecast update of U.S. and Canadian OPE shipments for 2023 and 2024. Following the extraordinary OPE market of the immediate past three years, OPEI’s econ- omist and member experts continue their efforts to com-

OPEI’s conference center and headquarters building. Spon- sorships are available; contact Bethany Murphy at bmur- phy@opei.org for more information.

EPA HOLDS HEARING FOR CARB SORE AMENDMENTS WAIVER REQUEST

The Clean Air Act (CAA) requires that CARB request of the EPA Administrator a waiver of the CAA state rules (and receive approval of the waiver) before new emission rules can be “enforced.” CARB submitted the wavier request to EPA Dec. 22, 2022. A virtual hearing was held June 27 and a written com- ment deadline for July 28. OPEI’s Engine and Fuels Committee is preparing testimony and comments requesting the EPA Administrator consider rejecting the waiver request based on rulemaking administrative concerns. CARB INITIATES NEW SORE INVENTORY PROJECT CARB has initiated a new SORE inventory project to study population and emissions of SORE products. The inventory will again be telephone survey based and executed by Cali- fornia State University, Fullerton. Landscapers will be the first segment surveyed. OPEI continues to have significant concerns with the accuracy of telephone-based survey for the purpose of determining equipment use and age, and therein sector emission. During CARB’s workshop on the draft survey, landscapers echoed OPEI’s concerns, noting that their responses would be guesses, and their employees would likely grossly overes- timate responses because they may not distinguish between the workday and equipment run time. OPEI submitted com- ments to the proposed survey March 31.

pile consensus predictions based on the best available data, including OPEI’s collected member shipment numbers. OPEI at member request has also been expanding its forecasting scope to meet market needs and product in- novations, including just in the last year the addition of new detail for corded and battery handheld products, seated and stand-on commercial mowers, as well as new forecasting for pressure washers. OPEI also initiated forecasting of Canadian OPE shipments within the last year, based on the long-standing OPEI collec- tion of member shipments north of the U.S. border. Looking forward to future new forecasting, OPEI’s third party (Vault Consulting) is now collecting member shipment data for battery-powered riding lawnmowers, which will serve as the basis for future forecast data once an adequate historical sample of data is published. OPEI forecasting relies on an ex- perienced third-party economist and an established forecast model, with peer-review by member expert representatives.

SAVE THE DATE FOR 2023 MARKET STATISTICS FORUM OPEI’s Market Statistics

Forum will be held Sept. 20-21 at OPEI’s headquarters building in Alexandria, VA.

BRITISH COLUMBIA CONSIDERING NEW ZERO-EMISSIONS REQUIREMENTS

The event provides a diverse program of expert speakers on the global economy and OPE sector, with specific focus on market forecasting, product innovation, retail channels, professional markets, and consumer demographics. The event also provides member professionals and invited guests with ample networking opportunities, taking full advantage of

The BC Ministry of Energy is seeking comments on new ze- ro-emission small off-road engine requirements. The ministry is proposing that, starting Jan. 1, 2026, sales of most SOREs will be required to be zero-emission (battery/electric), and as of

Jan. 1, 2030, sales of pressure washers and portable gener- ator engines will be required to be zero-emission. The OPEI Engine and Fuels Committee will be preparing comments and continuing to follow this issue. Contact Greg Knott, Senior Vice President of Standards and Regulatory Affairs, at gknott@ opei.org for additional information.

As the advocacy voice of the outdoor power equipment industry, OPEI membership is open to manufacturers and suppliers of a broad range of equipment and technologies. Members and new companies expanding their product offerings in the market are encouraged to learn more about the benefits of membership at www.opei.org/join or by con- tacting Chuck Bowen, Vice President, Communications and Member Relations, at cbowen@opei.org.

OPEI ADDRESSES INTERNATIONAL BATTERY SEMINAR OPEI’s Vice President, Battery Products & Industry Affairs, Brandon Martin, was a featured speaker at the International

OPEI, EXPO ANNIVERSARY SUPPLEMENT RELEASED In 2023, the Outdoor Power Equipment Institute celebrates its 70 th Annual Meeting and 40 th Equip Exposition. In honor of these incredible milestones, OPEI partnered with Landscape Management magazine to

Battery Seminar in Orlando, FL, to raise the battery community’s awareness as it relates to con- tinued adoption within the OPE industry. Alternative power sources within the OPE sector have grown dramatically since 2010 due to an array of market influ- ences from technology enhancements to product incentives. As the battery industry ramps up for continued EV automo- bile adoption, OPEI highlighted how the OPE landscape has transformed over the years and how the industry will contin- ue to demand alternative power sources moving forward. In addition to speaking at the seminar, Martin spoke on a panel discussion at the Soteria Consortium meeting that aimed to increase the dialogue around battery safety by bringing in experts to share best practices within the battery industry. As battery safety remains an industry top priority, OPEI will continue to advance safety through industry stan- dards and advocacy efforts. OPEI WELCOMES SEVERAL NEW MEMBERS The Outdoor Power Equipment Institute is pleased to wel- come four new members this spring: Cirba Solutions, a battery management and materials company; Merotec, a manufacturer of gasoline and electric outdoor power equipment; Valsi Power Equipment, a supplier of generators, pumps, compressors, and outdoor power equipment; and whisper.aero, which develops quiet propulsion and air-mov- ing systems.

create a commemorative anni- versary supplement distributed with the magazine’s June issue. Read the full issue at www.landscapemanagement.net.

DEPARTMENT OF ENERGY ISSUES FINAL RULING ON ELECTRIC MOTORS The U.S. Department of Energy (DOE) issued a final ruling on adopting new and amended energy conservation standards for electric motors. It was determined that the

new and amended energy conservation standards for these products would result in significant conservation of energy, and are technologically feasible and are economically justi- fied. Compliance with the new and amended standards estab- lished for electric motors in this direct final rule is required on and after June 1, 2027, which leads OPEI to believe similar rulings will be issued for EPSs and Battery Chargers.

QUARTERLY REPORT Summer 2023

OPEI CANADA FILES PLASTICS REGISTRY OPPOSITION LETTER

CPSC CONSIDERING PORTABLE GENERATOR CO EMISSION LIMITS The U.S. CPSC has issued a Supplemental Notice of Proposed Rulemaking that proposes a 150 g/hr CO emissions limit and CO shutdown technology. The ANSI/PGMA G300 voluntary standard was developed to address CO poisoning risk by in- clusion CO shutdown requirements. The voluntary standard is highly effective at reducing the risk of injury and is widely adopted by industry. Despite this voluntary standard, the agency continues work on this rulemaking. OPEI submitted comments on June 20. The OPEI Engine and Fuels Committee continues to monitor any rule developments. OPEI CIRCULATES NEW MOWER STANDARD Following the completion of the first ballot last December, OPEI’s Lawn Mower and Commercial Turf Care committees have now completed a second proposal for recirculation ballot on the proposed U.S. adoption of the international standard ISO 5395. Most significantly, in response to stakeholder comments the proposed standard’s scope has been revised to apply to only internal combustion engine (ICE) powered lawnmow- ers, in harmonization with the ISO standard. When the standards are published later this year as OPEI 5395 Parts 1 (common requirements), 2 (walk-behind), and 3 (ride-on), they will replace and revise the longstanding ANSI/ OPEI B71.1 and B71.4 standards. This transition is intended to markedly improve the global harmonization of industry stan- dards for ICE-powered lawnmowers. ASSOCIATION PROPOSES REAFFIRMATION OF CUT-OFF MACHINE STANDARD The OPEI B175.4 Cut-Off Machine Standard Committee is proposing to reaffirm the ANSI/OPEI B175.4-2018 American National Standard for Portable, Handheld, Internal Combus- tion Engine-Powered Cut-Off Machines, Safety and Environ- mental Requirements. OPEI is seeking interested stakeholders to participate on the consensus body to review the standard. OPEI SEEKS STANDARDS STAKEHOLDERS Are you interested in participating in the development of U.S. and international OPE standards? OPEI is seeking “User” and

With respect to the government of Canada’s objective to reduce plastics ending up in the envi- ronment, the introduction of a plastics-specific registry would only conflict with the principles

of whole good Extended Producer Responsibilities (EPR). It would ultimately establish an unnecessary registry that would duplicate current EPR obligations and potentially add more cost to consumer products. In an OPEI-led joint coalition, an opposition letter was filed in May to the Director of Plastics Regulatory Affairs Division and the Standing Committee of Industry and Technology.

U.S. DOT LITHIUM BATTERY AIR SAFETY ADVISORY COMMITTEE The U.S. Department of Trans- portation — Lithium Battery Air Safety Advisory Committee (LBASAC) publicly met in April to improve safety risks when transporting lithium batteries.

Subcommittees within the advisory group provided addi- tional updates such as battery incident trends from Depart- ment of Transportation 5800.1 data results and UL’s airline TRIP research. Other factors making impacts to the committee include the recent passage of the INFORM Act which imposes seller diligence and disclosure requirements for online marketplac- es and recent adjustments targeting counterfeit merchandis- ers from large online marketplaces. International platforms, including ICAO and UN, are making progress as it relates to improving transportation and packaging requirements. Without congressional approval the LBASAC is slated to adjourn in 2025, which is driving the advisory group toward finalizing an official recommendation and an additional focus on how awareness education can be implemented. The next public meeting is tentatively scheduled for early November.

INTERNATIONAL STANDARDS GROUP TO CONVENE AT EQUIP EXPO

“General Interest” stakeholders to participate on consensus bodies and U.S. Technical Advisory Groups for standards development activities. Contact Greg Knott at gknott@opei. org for standard development participation information.

The International Organization for Standardization’s TC 195 Working Group 6 (WG6) will meet at Equip Exposition this October to continue development of the next revision of the ISO 19432-2, International Standard for Building construction machinery and equipment — Portable, hand-held, internal combustion engine-driven abrasive cutting machines — Part 2: Machines for abrasive chains — Safety requirements.

ISO EXPERTS MEET IN GERMANY ON AUTONOMOUS LAWNMOWERS

OPEI members participated as U.S. delegates/experts at a May 23-25 meeting of ISO TC 23 SC 13 WG 13 in Walldorf, Ger- many, to continue development of a new ISO standard for larger form autonomous lawnmowers powered by internal combustion engines. These machines are largely anticipated to be used in commercial applications and require a standard different from those adopted for smaller, residential robotic mowers. The group is also intent on working in coordination with colleagues involved in committee work through the Inter- national Electrotechnical Commission (IEC) where parallel standards development has begun for machines powered by battery. The ISO group will be convening a series of virtual meetings this summer and fall, and then plan to meet in-per- son again Nov. 29-Dec. 1 at the OPEI offices in Alexandria. Also, in the spirit of cooperation between parallel ISO and IEC committee work, OPEI members continue to work through a cooperative effort to adopt new international stan- dards for battery-powered riding mowers of all forms, with the intent of maximum harmonization with the long-standing requirements of ISO and ANSI standards for ICE-powered lawnmowers, wherever practical. IEC MAKES PROGRESS ON BATTERY ELECTRIC PRODUCT STANDARDS The IEC’s Technical Committee 116 Working Group 7 and 10 virtually met in late March, mid-April, and May to continue its electric standard development efforts. OPEI, in conjunction with member experts, supported committee efforts on the preparation of international safety standards for battery and electric motor operated lawn and garden machinery. The committee’s work will continue with additional WG7 meetings scheduled for June to continue reviewing 62841-1 comments. Other committee meetings are scheduled for September, October, and November.

TURFMUTT FOUNDATION PUBLISHES NEW LESSON PLANS WITH USGBC LEARNING LAB The TurfMutt Foundation has released 10 new lesson plans for students in grades K-8 that are now available on the TurfMutt web site and in the USGBC Learning Lab. They are designed as a fun and engaging way for students to learn valuable science lessons in their own backyard, a park, or school yard. In the lessons plans, superhero and Foundation “spokes- dog,” Mulligan the TurfMutt, with her “outdoor power” pals Big Rooty, Water Warrior, the Green Ranger, and Professor Botany, battle the environmental “bad buys” including Car- bon Creep, Dust Demon, Heat Freak, and Dr. Runoff. The curriculum’s hero, Mulligan, is real-life rescue dog, rescued by Kris Kiser, OPEI and Foundation President, a few years ago. “Having a dog as a spokesperson of our program makes it ‘sticky’ for kids. And no one loves a yard and green space more than a dog,” he says. “Children may be more apt to learn valuable lessons right in their own backyard or school yard from a fun-loving, adventurer like Mulligan the TurfMutt.” TurfMutt’s past education curriculum has reached more than 70 million children, educators and families since 2009.

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