2025 Equipment Dealer Industry Trends Report

The DIS 2022 Agriculture Equipment Industry Trends Report is a comprehensive overview of what Ag dealers will be focusing on in 2022. This report compiles insights from surveys, Ag industry experts, and hundreds of Ag dealers across North America, to dealer prepare for the year ahead.

2025 Equipment Dealer Industry Trends Report Building blocks for business growth in the age of data, analytics, and technology.

Explore top dealer trends

Setting the Scene

Data

Analytics

Artificial Intelligence

Digitization

Security and Preparedness

A note from leadership

This year, we’ve expanded our trends report beyond Agriculture equipment, recognizing the value in learning from adjacent dealership sectors. Every industry has strengths and challenges, and by examining best practices across sectors, we aim to uncover insights that set us apart from the competition. As we tackle issues like supply chain weaknesses, high interest rates, and workforce shortages, it's essential to drive efficiency across operations. Leveraging data from dealer management systems can deepen insights into customer behaviors, profitability, inventory management, and collaboration with manufacturers. In this report, we explore critical questions, such as:

Shane Waldemar General Manager, DIS

How can you protect your business from new competitors, like Amazon? What strategies can set your dealership apart?

How can you best position your staff and resources? What steps will position you for future success?

We hope this report serves as a valuable resource as we collectively seek to enhance our operations and strengthen our positions in the marketplace.

Setting the Scene 01. How dealers can leverage technology to strike gold in 2025

Setting the Scene

What challenges do dealers expect to face in the year ahead?

We surveyed heavy equipment dealers across North America to identify the key challenges they anticipate in the coming year. The top concerns were rising product prices and difficulties in hiring and retaining talent, with attracting new customers following closely behind. Interestingly, concerns about parts shortages ranked second-lowest, suggesting that dealers are experiencing fewer supply chain disruptions compared to recent years.

1 2 3 4 5 (1 = Low Importance, 5 = High Importance)

Parts shortages

Rising product prices/interest rates

Customer retention

Attracting new customers

Hiring/retaining talent

Emergency preparedness

100%

2024 DIS Equipment Dealer Industry Survey

Setting the Scene

It’s easy to operate within the bubble of your own niche industry. But every industry has its strengths and weaknesses. You can find ways to differentiate your business from the competition by looking to adjacent dealership industries and applying what they are doing well to your business. Step outside of your bubble.

Construction

Agriculture

• Maintaining a

• Processes and overall asset management. • Succeeding in a multi-branch, multi-country, multi-currency marketplace.

multi-generational customer base built on personal relationships.

Strengths by Industry

• Managing the exacting details of

• Ongoing preventative maintenance contracts. • Machine uptime obligations.

thousands of service interactions from transient customers.

Materials Handling

Thermo King

Setting the Scene What do the most successful dealers from all industries have in common?

Data

Digitization

Analytics

Security

If you look at the industry as a whole, I think everybody needs to do a better job of positioning and branding themselves. You need to make yourself relevant. You need to make it a reason that people deal with you and look outside your industry. And just because it looks a little different than what you're traditionally used to, you need to be prepared to adopt it.

John Andersen Equipment Industry Consultant

In today’s ever-changing business environment, implementing a robust business management system is 100% essential for any construction equipment dealership. It streamlines operations, enhances inventory management, and improves customer relationship management. By integrating various functions into a single platform, dealerships can make data-driven decisions, optimize resource allocation, and ultimately boost profitability while delivering exceptional service to their clients. Without having a reliable BMS, you’re not going to survive this ever-changing business environment.

David Gordon, Executive Director IEDA (Independent Equipment Dealers Association)

Data 02.

Data You’re on the edge of a data gold rush. Don’t be the last to show up.

Your dealership management system aggregates a lot of data every day. The question is: Are you using it as much as you could be? Dealers who visualize and analyze their dealership’s data make more informed, more timely decisions.

It’s time to think about data differently:

Dealers need to be aggregators and stewards of data. Your dealership management software is a tool that enables you to acquire and aggregate data. You already have the data in your system and it’s time to use it.

Data Do you use data analytics and reporting to guide decision-making at your dealership?

13%

20%

Yes, I use it extensively

15%

Sometimes No, but I want to start using data analytics No, and I don’t plan to use data analytics

43%

2024 DIS Equipment Dealer Industry Survey

We surveyed heavy equipment dealers across North America to identify the key challenges they anticipate in the coming year. Only 20% of respondents said they use data and analytics extensively, while 43% said they use it sometimes. Many dealers are still in the early stages of adopting data and analytics. Each year, more advanced dealership analytics tools become available, giving dealerships that leverage them a competitive edge over those that do not. The data you need is already present in your DMS; now it's time to use it.

We see a big value in [data] because we have a lot of reports that we’re looking to run, especially in parts, Accounts Receivable and Accounts Payable, that we want to start diving a little bit deeper into. How often is that happening? What are people coming across? What’s the turnover ratio, the turning of parts, and each individual department, even by van? So, we’re looking to dive much deeper into the actual specific information of what we have as a company. It benefits everyone internally as we’re adding more people to the company who are looking for that higher level of information.”

Kevin Bond, Vice President of Information Systems/Fleet Management Tri-Lift Industries

Read the full story

The real-time speed of accessing and analyzing your organization’s data is a powerful tool for allowing managers and executives to make corrective and impactful decisions to set your business up for ultimate success.

Lauren Simkovic, Chief Financial Officer Thermo King Pittsburgh

Read the full story

Understanding your customer is key in any business, and the equipment business is no different. Technology, like AI, is changing how information is found and how technology is used. Everything from machine learning, like John Deere's See & Spray, to spot spray weeds in the field to ChatGPT giving human-like responses to questions asked. What used to take hours or days to find answers has been narrowed to seconds and minutes. The way the end users look at equipment is changing as well. Upgrade kits are now part of the conversation. They are taking a once old platform and making it new again. Understanding what the customer will do next requires data and lots of it. As we head into 2025 and beyond, how technology affects customers' buying patterns will make a huge impact. What they buy today will not be what they buy tomorrow, and how they buy today will not be how they buy tomorrow. As customers navigate new challenges in the heavy equipment industry, they will have needs that don't exist today. The only way a dealership will understand what is happening with their customer is to know and understand the data they are getting from the customer. A dealership needs to invest more heavily in the tools required to mine customer data and understand what the data is telling them, or else they will have a hard time being competitive through the rest of the decade. Dealerships must look at the next 5-10 years as a fundamental change in how they do business and their services. Unless a dealership makes these soon, it will be too little too late. Understand your customer's long-term generational plan, the changing needs, and, without a doubt, what your customer and industry data is telling you. A change in the equipment business is coming, and data will drive it.

Casey Seymour Moving Iron LLC

Data Unlock the potential of your dealership’s data:

Analytics dashboards connect to larger data sets than Excel and update automatically, offering a real-time, complete view of your business. 1. Stop manual data mining and Excel spreadsheets; save days or weeks of work.

Gain immediate knowledge of technician efficiency, without delay and without many hours of time-consuming data conversion or entry. 2. Track technician efficiency without manual spreadsheets.

Prevent the WIP list from accumulating into days or even weeks of labor postings, which can represent tens or hundreds of thousands of unrealized dollars. 3. Control the work-in-process monster; reduce time to billing.

Make annual or multi-year performance goals meaningful by empowering team members to implement immediate process changes that help achieve those goals. 4. Build a budget to achieve your goals; share with managers to achieve them.

Controlling your parts on hand and matching your stock to customer usage will greatly improve your return on capital. 5. Optimize your parts investment; improve your use of the capital sitting on your shelves.

Analyze customers’ current spending patterns and retention rates. By sharing this information with customers, you can enhance transparency and build trust. 6. Track details of customer spending; increase share-of-wallet.

See your financial standings at a glance and up-to-date so you can take corrective action faster than if you were to use manual reporting. 7. Check your financial standings at any time; act early to correct them.

With dozens of variables affecting results by branch by month, evolution analysis helps observe trends, advise actions, and see their effects. 8. Analyze evolution, chart progress, and assess process changes.

Implementing any process change requires the ability to monitor the area being changed and analyze the results of management action taken. 9. Control your growth; measure it so you can manage it.

Analytics 03.

Analytics Put your data to good use with analytics.

Raw data alone won't provide much value—you need to sift through it to uncover the insights that truly matter. This is where analytics comes in. It processes and organizes your data, enabling quick, decisive decisions across your business. Whether you're managing the entire operation or focusing on specific areas, analytics provides clarity. For customer relationships, analytics turns raw data into actionable insights, allowing you to better manage customer interactions and make informed marketing decisions. It also helps create a truly customer-centric approach by leveraging data across your DMS to strengthen personal relationships supported by real insights. Additionally, analytics is key to aligning staff goals and motivations throughout the organization. Tools like the Technician Scorecard in DIS Analytics provide staff with the support they need to stay focused and improve performance at every level.

Analytics is not a luxury; it’s a base-level requirement. When was the last time you jumped in your car without looking at the fuel level, temperature, clock, or even the directions on where to go? In today’s data-driven business environment, a dashboard is critical. How can you make decisions, even simple ones, without access to basic key data? You wouldn’t set out in your car without the dashboard, and you shouldn’t be doing it in your business either. Running out of gas can have a far more profound effect on your day. Step one of using Analytics is building your dashboard. Deciding what key elements need to have visualization. Analytics is demand based data, presented in an easy to digest format that will assure, or prompt you when making simple decisions. Ask yourself, what is it I need to see every day, every week, every month. What should my dashboard look like based on my roles and responsibilities. Step two is using analytics to discover new things, not just reinforce beliefs. This is where data mining and creative thinking turn over thousands of data nuggets to allow you a fresh perspective on your business. It’s not about changing what you do, as much as capitalizing on everything you have done and the data that you have accumulated. Mining your data with advanced analytics opens up a literal floodgate of opportunities. Your job is to think about what you would really like to know, learn, and adjust.

John Andersen Equipment Industry Consultant

In developing the production level report with the [DIS Analytics] technician scorecard, seen a significant increase in productivity in the service department at the production level without necessarily having the need for management to take any additional steps, to help facilitate some of that production. So, it's also built a lot of trust, which is another kind of happy accident, where the, you know, the technicians no longer have to wait for me or for any other manager to produce a report of, you know, whatever they're, whatever they're doing, and give it to them.

DIS Analytics

Stefan Shriewer, Director of Operations Ewald Kubota

Read the full story

Take Data-Driven Action. Maximize Profitability at Your Dealership.

The biggest gain for the team, especially in the service department, was being able to see the real-time efficiency, recovery, and total billing by technician. It reinforces tech practices and efficiency, and it reinforces accountability. Eric Holloway, Owner On-Site Services Read the full story

Learn More

Artificial Intelligence 04.

AI: the next frontier of dealership optimization.

How do you see AI impacting your processes?

Artificial Intelligence is transforming the equipment dealer industry, revolutionizing how we conduct business. While we've only begun to tap into AI's potential, it's already driving efficiency and profitability in dealerships. A 2024 DIS survey of equipment dealers across North America revealed that the greatest opportunities for AI lie in optimizing inventory management, analyzing

Other

I don’t plan on using AI

Tailored product and service recommendations

Customer marketing

Customer trends analysis

Predictive maintenance

Parts stocking and inventory management

customer trends, and delivering personalized marketing strategies.

5% 10% 15% 20% 25% 30% 35% 40%

45%

50%

2024 DIS Equipment Dealer Industry Survey

AI AI: the next frontier of dealership optimization.

To succeed in an AI landscape, dealers need to find a balance between employing artificial intelligence and emotional intelligence in their plans and processes.

AI vs. EI

Artificial Intelligence: Leveraging data, algorithms and computational power to automate tasks, analyze patterns, and make smart decisions.

Emotional Intelligence: Understanding and managing emotions, both one’s own and those of others.

AI Uses: Predictive analytics, process optimization, and data-driven decision-making.

EI Uses: Building strong interpersonal relationships, empathy, and effective communications.

AI AI uses in the dealership:

Did you know that if you’re using a dealership management system, you’re already using some AI functionalities? Future iterations of dealership software will only continue to build on these functions. Here are some ways AI is already being used in dealerships.

AI AI uses in the dealership

Parts Stocking and Inventory Management • Analyze historical sales data

• Predict demand patterns • Optimize inventory levels • Ensure the right parts are available when needed • Reduce excess stock and associated costs

Service • Automated time clocking and labor rounding

Customer Trends Analysis • Uncover insights into customer purchasing behavior, preferences, and trends • Tailor your offerings, marketing strategies, and personalized recommendations to meet evolving customer needs

Digitization 05.

Digitization Digitization is a mindset shift.

Customer relationships are the foundation of your business, built on trust and personal connections—this fundamental truth remains unchanged. However, customer expectations have evolved, largely influenced by companies like Amazon. Today’s customers expect real-time updates at every stage of the sales and service process, with information readily available. To meet these demands, dealers must adapt without disrupting workflow or overburdening their teams. Technology offers the tools to engage the right customers at the right time with the right messaging. It allows you to identify issues quickly and make informed, data-driven decisions. But to fully harness these benefits, fostering a culture of technology adoption is essential. Your team must understand how technology enhances their work, enabling them to focus on what truly matters. Building this mindset takes time and dedication, requiring technology champions within your organization to drive the change forward.

Digitization What service processes would you like to automate?

A DIS survey of equipment dealers across North America revealed a strong demand for automation in various dealership areas, particularly communication with customers, team-members and third-party vendors.

1 2 3 4 5 (1 = Low Importance, 5 = High Importance)

Technican scheduling

Parts ordering

Planned maintenance scheduling

Invoicing

Analytics reporting

Status updates to customer

100%

2024 DIS Equipment Dealer Industry Survey

Digitization There is no over-communication

Get as much information upfront as possible so surprises don’t occur once a job starts, and so you can set expectations with the customer upfront. • Have customers take pictures of items that need to be fixed or replaced in advance to have a better understanding of the job. Texting is a great way to collect information pre-ops so you can expedite the check-in time.

Even if there is no update to communicate, communicate that to the customer at the agreed-upon touchpoint. Set the expectation on the timeline with customers upfront so they aren’t left to fill in the blanks themselves.

• Set the expectation with the customer that work will not be completed until all parts arrive.

Service Status Updates: Aim for a cadence of at least one update to the customer per week.

Digitization

Do you use text messaging at your dealership?

Text Messaging

2024 DIS Equipment Dealer Industry Survey

Making communication with customers simple and efficient is key to running a smooth dealership. By going beyond just phone calls and emails, you can respond faster and more reliably, keeping everything on track. This means fewer work order mix-ups and a lot less confusion. Plus, cutting down incoming calls by up to 50% helps avoid the frustration of missed voicemails, all while speeding up your response times—without adding more work for your team. Let's face it, texting has become the go-to way to stay in touch with customers throughout the service process.

21%

42%

37%

Chatbots

If you aren’t leveraging chatbots to go through work order history, connect customers with service advisors, and more, you’re missing out on the opportunity to have 95% of the process of opening a work order taken care of.

Yes

No, but I want to start No, and I don’t plan to start

Digitization Mobile Applications

Dis Service 360

Every dealership should leverage mobile applications that seamlessly integrate with their backend dealership management systems, to enable their teams to work efficiently on delivering an amazing customer experience.

Which DMS features do you believe will become more important for your dealership?

Maximize Your Dealership’s Service� Productivity and Profitability

AI and predictive analytics

33%

Better mobile access Enhanced cybrsecurity features Other

Learn More

47%

59%

2024 DIS Equipment Dealer Industry Survey

DIS Notify

“It gets to be tedious when you have to call a customer and they don’t answer, and then they call you back and say they never received a phone call. Our service writer finds it useful to let customers know when their machines are ready. Or if we’re waiting on repairs and whatnot—he likes to be able to keep track of who he’s contacted and who hasn’t.”

Arikka Morrell, Assistant Service Manager Beaumont Tractor Co.

Read the full story

Connect with Customers Instantly Using Text Messaging

Learn More

Security and Preparedness 06.

Security and Preparedness It’s time to think about emergency preparedness.

How prepared do you feel for the event that your dealership management system goes down?

No matter what you do to prevent interruptions to your business, things happen. From natural disasters to cybersecurity attacks, there will be times when your business system goes down. According to Verizon’s 2024 Data Breach Investigations Report , 14% of breaches involved the exploitation of vulnerabilities as an initial access step. This is almost 3x the amount from the previous year. That’s why it’s crucial to have a solid business continuity plan that your team can easily access in the event that your system goes down. Understand what your partner is doing to protect themselves as well as what data you have with them.

35%

49%

Somewhat prepared

Not prepared

Very prepared

2024 DIS Equipment Dealer Industry Survey

Customer Trends Analysis

• Uncover insights into customer purchasing behavior, preferences, and trends • Tailor your offerings, marketing strategies, and personalized recommendations to meet evolving customer needs

In an uncertain world, crafting an actionable plan for business continuity in the event of unforeseen circumstances is critical for long-term success. Whether systems are taken down by a cybersecurity threat, power grid failure or a natural disaster, having the basic analog tools and contingency systems in place to transact business will ensure that you can continue to serve your customers without interruption.

Tammy Richards, Director of Business Operations DIS

Security and Preparedness Have a business continuity plan:

Keep an Updated Parts Inventory Pad: • Save an electronic copy that is accessible offline. • Include the parts quantity that you have available at the time it’s generated, bin locations, etc. • Save an electronic or printed copy of customer special parts pricing discounts by line.

Aged Receivables Reports: • Keep electronic copies updated regularly. • Include past/current balances and general ledger summaries by age (31+, 60+, 90+, 120+).

Inventory/Flooring Reports: • Include current inventory, specs, account totals, and floored units. • Subtotal by vendor.

Document Storage: • Store documents in a cloud environment accessible by cell phone for emergencies. • Store a weekly report of your Work-in-Process details.

Templates: • Keep customizable templates ready for key reports to maintain service consistency. • Keep Google Doc versions of all customer-facing documents (Work Orders, Quotes, Invoices, Statements, etc.).

Security and Preparedness Cybersecurity checklist:

Passwords:

Firewall:

Require employees to use strong passwords with a combination of uppercase and lowercase letters, numbers, and symbols. Enforce password changes every 90-120 days. Use a password manager or vault to help you save and keep track of different passwords (e.g., 1Password, LastPass, etc.)

Ensure that a firewall is in place to protect your dealership network from unauthorized access.

Antivirus Software:

Software Updates:

Keep all software, including the operating system and applications, up to date with the latest security patches. Automate the process if possible or schedule regular reminders.

Install and regularly update antivirus software from a reliable provider to protect against malware and viruses.

Security and Preparedness Cybersecurity checklist:

Email Security:

Data Backup:

Implement spam filters and educate employees on the dangers of phishing emails. Implement an email and communications policy that requires employees not to use personal emails when communicating about work-related information (e.g., do not share passwords, personal data, or financial information through emails).

Regularly backup important data to an external drive or cloud-based server to protect against data loss. Regularly test the backup process to ensure it’s working properly.

Remote Access Policy:

Mobile Devices:

Educate employees on the importance of securing their mobile devices and implement mobile device management (MDM) software if necessary. Encrypt sensitive data stored on mobile devices (e.g., password protect pictures, files, etc.)

Secure remote access with a virtual private network (VPN) or another secure method. Provide employees with guidelines for using remote access securely.

Security and Preparedness Cybersecurity checklist:

Social Media:

Incident Response Plan:

Establish guidelines for employee social media use and monitor the company's social media presence for potential security threats.

Develop and regularly review an incident response plan to ensure that the business is prepared to respond to a cybersecurity breach.

Physical Security:

Multi-Factor Authentication:

Implement physical security measures such as locks and security cameras to protect against theft or unauthorized access to the business premises. Do not leave computers, laptops, workstations, tablets, or mobile devices unattended.

Implement multi-factor authentication for access to sensitive infor- mation, systems, and applications.

Security and Preparedness Cybersecurity checklist:

Disposing of Computer Hardware & Data:

Employee Awareness & Training:

Regularly educate employees on cybersecurity best practices, including how to recognize and respond to potential security threats. Advise employees never to open attachments or click on links from unknown senders. How to spot scams and rogue URLs: The message arrives unexpectedly The sender is asking you to do something you’ve never done for that sender before The message includes as stressor event (e.g., it asks you to act NOW) The request is malicious – performing it can harm your interests Once identified, report it to your IT Person

Hard drives should be wiped to remove all sensitive dealership data and recycled. Note: back-up your data from the hard drive before it is destroyed.

External Audits:

Conduct regular external audits to identify and address any vulnerabili- ties in your dealership’s cybersecurity position.

Conclusion

431

Conclusion Lay a solid foundation for your dealership’s future.

Embracing technological updates is a journey that requires time and commitment from your team. We hope the trends and best practices highlighted in this report will help you lay a strong foundation for this transition. There is immense value in looking beyond your niche to see how other dealers in various industries are adapting to the evolving market demands. By equipping your team with data-driven insights and deepening your understanding of your customers, you can create robust processes that ensure the longevity of your dealership. Remember, becoming a technology champion at your dealership is essential for navigating the future successfully. Embrace these changes, and together, let’s drive the industry forward.

DIS gets you there.

DIS understands what is important to heavy equipment dealers. We are actively working to address the challenges highlighted in this report by building, buying, or partnering to provide dealers with the right solutions. Talk to one of our dealership experts about how DIS can help you lay the foundation for a bright future.

1-800-426-8870 sales@discorp.com

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43

Made with FlippingBook Annual report maker