OPEI 04-2024 quarterly report

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

QUARTERLY REPORT Spring 2024

LETTER FROM THE PRESIDENT With spring underway across the coun- try, our staff continues to prepare for Equip Exposition 2024. Additions like a keynote from This Old House host Kevin O’Connor, a new post-show happy hour in Freedom Hall, and first-ever Certification Center offering pesticide and fertilizer CEUs in the expanded West Wing are sure to make this year’s trade show another can’t-miss event. Also new at this year’s Equip is a Gar- den Center on the show floor, which will feature plant material and hard goods, part of an ongoing effort to expand the show’s reach to new audiences. The association continues to ad- vocate on behalf of the industry and its members. This spring we launched “Mowers Aren’t Toys” campaign to ed- ucate parents and caregivers on how to best keep children safe around outdoor power equipment. Just over a month into launch, the campaign, which will

Equip Exposition staff visited Blue Ocean Traders, a national distributor for garden center and design elements, at its flagship store in downtown Louisville.

run through June, has already reached more than 20 million impressions. Registration is now open for this summer’s Annual Meeting, June 23-25,

in Ponte Vedra, FL. I hope you’ll join us there for the invaluable business edu- cation and networking OPEI members have come to expect. – 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

FULL PROGRAM AVAILABLE FOR 2024 ANNUAL MEETING IN PONTE VEDRA BEACH Registration is now open for the Outdoor Power Equipment Institute’s Annual Meeting, to be held June 24-26 at the Ponte Vedra Inn & Club. The event, open to all OPEI members, features three award-winning speakers focused on the global economy, communication, and the 2024 elections – as well as plenty of time for networking, and the annual OPEI Louisville Classic golf scramble. For registration and more details on the program, visit www.opei.org/pontevedra . We’re looking forward to a dynamic program this year, with sessions designed to give attendees insight into the economic and political trends that will shape the industry. And we’ve made sure to provide plenty of time in the agen- da for members to connect and network during their stay in Ponte Vedra. Speakers confirmed for the 2024 event include:

Beaulieu

Costa

Duhigg

Alan Beaulieu, President, ITR Economics: 2024-2025: A Changing Landscape Robert Costa, Chief Election & Campaign Correspondent for CBS News: Brace for Turbulence: Inside Campaign 2024 Charles Duhigg, two-time New York Times bestselling author and Pulitzer Prize-Winning columnist: Supercommuni- cators: The Power of Conversation and Hidden Language of Connection The room block at the host hotel, the Ponte Vedra Inn & Club, is also open and reservations can be made online at www.opei.org/pontevedra or by calling 888-839-9145.

QUARTERLY REPORT Spring 2024

and faces new market and regulatory challenges,” said OPEI President Kris Kiser. The 2023-2024 Board Executive Committee comprises: • Chair Mike Clancy, CEO, Chervon North America • Vice Chair David Thorne, Vice President, Turf & Compact Utility Business Unit, Deere & Company • Immediate Past Chair Brian Melka, Group President — Kohler Energy • Equip Exposition Show Chairman Dan Ariens, Chairman and CEO, Ariens Company Rounding out the Board of Directors are: • Rick Gray, President – Outdoor Power Equipment, Mil- waukee Tool • Klaus Hahn, President North America, Greenworks • Peter Hampton, President and CEO, Active Dynamics • Chris Keffer, President and CEO, STIHL Inc. • Rick Olson, Chairman and CEO, The Toro Company • Andreas Rangert, President – North America, Husqvarna Forest & Garden Division • Doug Redpath, President & General Manager, Outdoor, Stanley Black & Decker, Inc. • Harold Redman, President and CEO, Echo Incorporated • Tom Rugg, Senior Vice President & President, Energy Solu- tions, Briggs & Stratton • Nelson Wilner, Senior Vice President and General Manag- er, Engines, Kawasaki Motors Corp. USA The next Board meeting will take place at OPEI’s 2024 Annu- al Meeting, slated for June 24-26 at the Ponte Vedra Inn & Club in Ponte Vedra Beach, FL. OPEI TO HOST IICEMA ANNUAL MEETING OPEI will host the International Internal Combustion Engine Manufacturers Associations Annual Meeting May 8-9 at its headquarters building in Alexandria, VA. The group consists of engine manufacturer trade asso- ciations from the U.S., Europe, China, Japan, and India. The group’s Annual Meeting focuses on regional updates in the small engine, agriculture and construction, locomotive and rail, stationary, and marine off-road segments. In addition, the Environmental Protection Agency will dis- cuss recent regulatory developments in the U.S.

New OPEI Board members are, clockwise from top, Rick Gray, Presi- dent – Outdoor Power Equipment, Milwaukee Tool; Andreas Rangert, President – North America, Husqvarna Forest & Garden Division; Tom Rugg, Senior Vice President & President, Energy Solutions, Briggs & Stratton; and Doug Redpath, President & General Manager, Outdoor, Stanley Black & Decker, Inc. OPEI WELCOMES 4 NEW BOARD MEMBERS The Outdoor Power Equipment Institute recently named four new members to its Board of Directors. The new Board members are: • Rick Gray, President – Outdoor Power Equipment, Mil- waukee Tool • Andreas Rangert, President – North America, Husqvarna Forest & Garden Division • Doug Redpath, President & General Manager, Outdoor, Stanley Black & Decker, Inc. • Tom Rugg, Senior Vice President & President, Energy Solu- tions, Briggs & Stratton “We look forward to our new Board members’ perspec- tive and strategic thinking for OPEI, Equip Exposition, and the TurfMutt Foundation as the industry continues to evolve

To Freedom Hall and North Wing

OEM Supplier Pavilion West

Exhibit Area

WEST WING

Exhibit Area

New Product Showcase

Equip Golf Experience

Pod-Row™

Main Entrances

Drone Zone

Infinity Pool Training

Registration

Registration

Certification Center

Mulligan’s Garden Park

Commuter Lounge

Main Entrances

Food Trucks and Seating

Broadbent Dr.

Shuttle Bus Location

Fairgrounds Rd.

Concept Image - r8 Not to be considered final.

OPEI LAUNCHES MOWER SAFETY CAMPAIGN TO KEEP KIDS OFF MOWERS OPEI’s safety campaign, “Mower’s Aren’t Toys” launched in March on social media and connected TV platforms, with ini- tial focus in southern-most markets where mowing season is in progress or beginning. The campaign will run through June, and shares how parents and caregivers can keep kids safe and avoid injury when operating mowers and other outdoor power equipment. To date, the messaging has gained more than 20 million impressions. Additionally, OPEI launched a supportive landing page at www.opei.org/mowersafety to host the campaign mate- rials and additional consumer information. These materials are further now available for member use through their own channels, to achieve broader circulation and promotion of the campaign. SPRING OPE MARKET FORECAST RELEASED OPEI published its most recent quarterly consensus forecast update Feb. 26, which includes final 2023, and projected 2024 and 2025, total industry OPE shipments in the U.S. and Cana- da. The next update will be published to members in June. The committee’s next meeting is planned for Sept. 25-26, at the OPEI offices. This meeting will include the association’s annual Market Statistics Forum, an invited speaker program on economic and market perspectives, likely to include third-party experts, a national retailer, and commercial land- scapers. For updates on that agenda as they become available, visit www.opei.org/forum .

EQUIP EXPOSITION’S WEST WING WILL SHOWCASE NEW, IMPROVED EXPERIENCES Landscapers, contractors, and outdoor power equipment dealers will find a wealth of experiences that expand how they think about and grow their businesses at Equip Expo- sition this year in the West Wing at the Kentucky Exposition Center (KEC), Oct. 16-18. With the KEC gearing up for a major renovation and con- struction project designed to further modernize its facilities, expand its footprint and reorient the building, Equip Exposi- tion organizers are taking steps to make the West Wing more comfortable and offer new experiences for attendees. “Now that Equip shuttles will drop off and pick up attend- ees at the West Wing, we’ve added a commuter lounge, food trucks and seating, and registration,” says Kris Kiser, President and CEO of the Outdoor Power Equipment Institute, which owns Equip Exposition. “Also, with many of the new training and certification classrooms as well as the New Product Showcase located there, we expect the West Wing to be a major hub of activity.” Some of the experiences attendees will find in the West Wing at Equip Expo 2024 include: • A new Classroom and Certification Center, • The annual dog adoption event, Mutt Madness on Thurs- day, Oct. 17, in the new Mulligan’s Garden Park, • New infinity pool training, • The Drone Zone, • The New Product Showcase, • The Equip Golf Experience sponsored by TD Retail Card Services

QUARTERLY REPORT Spring 2024

“The West Wing is geared toward landscapers and contrac- tors so they can experience where the industry is going next,” says Kiser. “And get valuable training and certifications that will help expand their businesses when they get home.” The Classroom and Certification Center will offer classes covering scaling your business, developing crew leaders into better managers, pesticide management and application, tree and shrub pruning and plant health, and more. Education at Equip also focuses on employee recruitment and reten- tion, irrigation repair, installation and design, outdoor lighting design and installation, and outdoor pool design, mainte- nance and installation, working with private equity to expand or sell your business, understanding key financial metrics to boost profitability, and more. Equip also will give back this year with a special project that helps Louisville-based philanthropy Blessings in a Backpack. Attendees visiting the West Wing can help stuff hundreds of backpacks with meals for distribution to school kids who may not have enough to eat. The event is sponsored by Hunter Industries and the TurfMutt Foundation. “Louisville is our home, and the city works hard to wel- come our industry every year in October,” said Kiser. “So given our industry is known for its generosity and giving back to others, we expect many Equip attendees will want to get involved with Blessings in a Backpack during the show, which we’re staging in the West Wing.”

Sponsored by:

Host of:

KEVIN O’CONNOR OF THIS OLD HOUSE TO DELIVER KEYNOTE FOR EQUIP ATTENDEES Renowned This Old House host and home improvement expert Kevin O’Connor will deliver the keynote address, sponsored by Kress, at Equip Exposition this fall, focusing on energizing the landscapers, contractors, dealers, and man- ufacturers who attend the trade show and helping them iden- tify ways to build their business. “We’re excited to have Kevin join us this October for Equip – he’s a seasoned contractor and really knows the business. He’s one of us, and he’ll have a great story to share with attendees,” said Kris Kiser, President of the Outdoor Power Equipment Institute, which owns and manages Equip Expo- sition. “Registration for the show is now open, so make sure you get your travel booked soon.” O’Connor says he has profound respect for the profession- als who attend Equip. “The people who run and make these businesses work, who show up every day, who employ and provide and get after it, those are my kind of people,” says O’Connor. He hopes they learn “ways to make their busi-

CPSC EXECUTIVE TO MEET WITH OPEI THIS FALL Austin Schlick, Executive Direc- tor of the Bethesda, MD-based U.S. Consumer Product Safety Commission has accepted OPEI’s invitation to meet with the Legal & Regulatory Compli- ance Committee Oct. 2 at OPEI’s offices.

Schlick was appointed to his current position by CPSC Chairman Alexander Hoehn-Saric in January, making him the agency’s chief operating officer. Previously, Schlick was CPSC General Counsel, and prior to that he held senior legal positions at the Federal Communications Commission and Department of Justice.

nesses better, ways to get more people into these honorable professions, and learn how to mentor, grow, and be more productive day in and day out.”

• Yakta, a manufacturer of zero-turn mowers Intertek, an international testing and certification company, also recently joined as an affiliate member. 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. Learn more at www.opei.org/join . BATTERY PRODUCTS COMMITTEE ESTABLISHES CHARGING NETWORK TASK GROUP The OPEI Battery Electric Products Committee (BEPC) has established a task group focused on understanding how the growing EV charging network can be used to power off-road equipment sectors such as OPE. The overall committee con- tinues to monitor ongoing battery legislation as states explore and expand their efforts for extended producer responsibili- ties in full recovery of rechargeable Li-ion batteries.

OPEI ADVOCATES FOR INDUSTRY TAX CREDITS Since the passage of the Inflation Reduction Act in 2022, OPEI has been advocating for the qualifi- cation of member products to the included 45 W tax credits. Congress included this pro- gram to provide market incen-

tives for clean commercial vehicles beyond on-road electric vehicles, understood to include battery-powered non-road mobile machinery, including among other industry products commercial lawnmowers. In comments to the U.S. Treasury in 2022, OPEI has argued in detail that the statute and supporting legislative intent per the congressional record made clear that such products were intended to qualify. Since that time, OPEI, working with allied interests such as the Association of Equipment Manu- facturers, has continued to meet with Treasury officials and congressional offices to urge the issuance of confirmatory guidance making clear which products qualify for 45 W and the process by which manufacturers satisfy the require- ments. With the 45 W program now in effect, and taxpayers now eligible to claim the credits beginning this spring, OPEI and its partners are redoubling efforts to urge action by Trea- sury, both within the department and on Capitol Hill. EIGHT NEW MEMBERS JOIN OPEI The Outdoor Power Equipment Institute is pleased to wel- come several new associate members, including: • DAE Systems, a manufacturer of earth-working products in the U.S. under license • Fixposition AG, a provider of autonomous guidance systems • Gemini Group, a supplier of engineered plastic and metal products • SEDEMAC, a manufacturer of controls solutions • U.S. Lubricants, a supplier of lubricants and fluids • Wisconsin Coil Spring (WCS Industries), a manufacturer of precision metal components

OPEI MEETS WITH DOT’S LITHIUM BATTERY AIR SAFETY ADVISORY COMMITTEE

The Department of Transpor- tation (DOT) – Lithium Battery Air Safety Advisory Commit- tee – convened in late 2023 to continue its collaboration of ensuring the safe transport of Lithium ion batteries. Discussions around limiting the state of charge of battery shipments to 30 percent, or its lowest practical state, proved to be challenging for batteries, especially when packed with or contained in equipment. Additional concerns were raised when it was mentioned that the DOT is moving to support this proposal during the International Civil Aviation Organization’s Dangerous Goods Panel meetings. However, OPEI supports opposition to such state of charge proposals because it could impact OPE man- ufacturers, and its supply chains, by creating possible risks where batteries are prematurely depleted while contained in the equipment itself.

QUARTERLY REPORT Spring 2024

OPEI TACKLES CHEMICAL POLICY OPEI committees are overseeing an active agenda of legisla- tive and regulatory proposals at all levels of government fo- cused on products’ chemical content. These include banned use, reporting of use, and labeling of use for chemicals listed to be hazardous or of concern. This area of policymaking is also largely stratified by those intended to address the safe use of products and those intended to address safe product disposal under the guise of extended producer responsibility. In December, OPEI joined an amicus brief before the Fed- eral 5th circuit court of appeals supporting Inhance (an OPEI member) in litigation with EPA, in which the agency threat- ened to close down the company’s fluorination of industry fuel tanks over PFAS concerns. In late March the court ruled in Inhance’s favor. In early March OPEI filed comments with both Maine and Minnesota identifying “currently unavoidable uses” of PFAS in outdoor power equipment. These two states are leading among numerous other states expected to follow suit in regu- lating the use of these substances. At the federal level, OPEI members that import products into the U.S. may be required to report known uses of PFAS in such products during the last decade. Reporting obligations under the EPA’s “PFAS Reporting Rule” begin this year, and OPEI has been working with members and allied industries on compliance guidance. And in January OPEI filed comments with California in response to the state’s latest effort to revise the warning re- quirements under Proposition 65, in this case revamping the “short form” warnings utilized by many members, to require that they newly include the name of the chemical for which the warning is provided. ANSI APPROVES OPEI MOWER STANDARDS OPEI has received ANSI approval for recognition as American National Standards of its recently proposed adoption of the ISO 5395 series standards for lawn mowers and its proposed reaffirmation of the B175.4-2018 standard for cut-off ma- chines. The ANSI/OPEI 5395-2024 adoptions are expected to be published later this spring. ANSI/OPEI B175.4-2018 (R2024) has been published and is available for purchase at the ANSI online bookstore. Complementary copies of published ANSI/ OPEI standards are available to members by request or via the OPEI member portal at www.opei.org .

OPEI’S MARTIN ADDRESS INTERNATIONAL BATTERY SEMINAR ATTENDEES Brandon Martin, OPEI’s Vice President, Battery Products & In- dustry Affairs, recently moderat- ed “Battery Power for Consumer Electronics” and presented on OPE electrification trends at the International Battery Seminar hosted in Orlando, FL. Alternative power sources within the OPE sector have

grown exponentially since 2010 due to an array of market influences, including technology enhancements, consumer behavior, and product incentives. As the battery industry ramps up for continued EV adop- tion, OPEI highlighted how the OPE landscape has trans- formed and how the industry will continue to demand all power source options moving forward. The overall event highlighted new battery developments, advances in materi- als, and manufacturing scalability in new technologies. Safety remains a cornerstone theme and OPEI is commit- ted to advance safety through industry standards and its advocacy efforts. For more information on battery safety, please visit www.opei.org/battery-basics . STANDARDS STAKEHOLDERS SOUGHT The Outdoor Power Equipment Institute is seeking stakehold- ers o participate in the consensus body review for proposed actions related to the OPEI chain saw, hedge trimmer, log splitter, and tiller standards. Stakeholder categories for these standards include OEM Producer, Supplier Producer, Consumer User, Retailer, Testing Organization, Government Agency, and General Interest. For information on how to participate in the chain saw and/ or hedge trimmer standard development activities please contact Greg Knott, Senior Vice President, Standards and Regulatory Affairs, at gknott@opei.org. For information on how to participate in the log splitter and/ or tiller standard development activities please contact Dan Mustico, Senior Vice President of Government and Market Affairs, at dmustico@opei.org.

TURFMUTT FOUNDATION SHARES TOP 10 BACKYARDING TRENDS FOR 2024

“Backyarding” – the act of taking activities typically associ- ated with the indoors outside into the green space around us – will continue taking root in 2024, according to the TurfMutt Foundation, which advocates for the care and use of green space, including our own backyards, community parks, green space, and school yards. “Now more than ever, homeowners are recognizing the power of their yards and parks doing environmental good, as well as benefiting their health and well-being,” says Kris Kiser, president and CEO of the TurfMutt Foundation. “Homeown- ers are making improvements in their yards with many goals in mind, thinking about what’s good for their families, pets, and our planet.” The TurfMutt Foundation predicts these trends for 2024: 1. Improving Existing Space (Rather Than Moving to a New One). High interest rates and low housing inventory mean more homeowners have chosen to renovate rather than move into a new home. With interior improvements complete, the focus turns to backyard improvements that artfully merge indoor and outdoor living. 2. Seeking a Home Near a Park or Nature. Even home- owners looking to downsize still want to maintain a connec- tion with nature. They know backyarding can happen in any size yard and seek additional connection to nature through community parks, school yards, and other green space. 3. Return of Neighborhood Parties…in the Backyard. Over the last several years, homeowners have invested in their outdoor living areas, and now they are using that space to bring back block parties in their own backyards. 4. Creating a Backyard Oasis for Fun. From parents look- ing for ways to lure their kids away from screens to neighbors wanting to connect with friends, homeowners are turning their backyards into a place for fun and games. Some go all out to install a pool or pickleball court while others take a simpler approach like designating a strip of grass for cornhole or a small soccer pitch. 5. Taking Better Care of Living Landscapes. Since homeowners have come to value their lawns, trees, and plants more than ever, they are investing in their care like never before. This means investing in equipment for DIY work and calling in professionals, as needed, for pruning, rescuing diseased trees, and revitalizing turfgrass, just to name a few.

6. Choosing Real Grass. The trend of ripping out real grass and replacing it with fake, plastic alternatives is fading as homeowners and communities recognize the limitations – and downsides – of plastic grass. Synthetic turf is hard to clean, hot on feet and paws, and difficult to recycle. 7. Planting for Pollinators. Once a niche practice, plant- ing for pollinator support is omnipresent. Homeowners understand the importance of their backyards to provide food and shelter to pollinators like birds, butterflies, and bats year-round. And they are selecting plants for their yards with pollinators in mind. 8. Adding Drought Tolerant Plants. Plants that are especially adapted to drier landscapes are better for wa- ter-stressed areas in our environment. Homeowners are doing their research and selecting plants that will thrive in their micro-climates. 9. Mixing Materials. As outdoor living has become incor- porated into daily life, homeowners are taking care to design cohesive outdoor spaces. They factor in landscaping, hard- scaping (patios, outdoor kitchens, etc.), and natural aesthet- ics (trees, boulders, etc.). 10. Backyard Birding. The birdwatching craze really took flight during the pandemic, but it’s not a fleeting fad. Bird- watching is not only relaxing, it is a great way to connect with nature right outside our back doors.

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