The list of challenges facing Association members is long: inflation, supply chain, and labor, to name a few. It is understandable that circumstances like these could lead you to operate in survival mode and abandon the long-term goals upon which your business is built. 

Understandable, yes, but wise? No.  

“Business owners and managers are telling us they’re just trying to get through these next three, six, or nine months,” said Travis Free, manufacturing business advisor at KCoe Isom.  “And that is understandable. But it also impacts the long-term strategies for manufacturers, which can ultimately deliver a negative setback to their profitability.”

While shifting to short-term strategy can feel more stable and set up the possibility of a quick win, Free cautions that it could cause “massive problems in the long run.” 

Short-term planning should align with long-term goals—not the other way around. Companies that have a strategic plan in place that aligns with their vision and long-term goals are the companies that thrive for the long haul, Free said. He recommends manufacturers seek to re-strategize the way they operate to adjust to the demands of the current economy, but “take into account its effect on the long-term strategy.”

The Reality of the Bottom Line

Ask any owner or manager in the industry what their biggest short-term goal is right now, and they’ll respond immediately and in unison: staying profitable. 

Over the last 18 months, Free andÌęhis colleagues have heard a resounding battle cry from manufacturers: We need to maintain profitability to keep the doors open. This mindset often leads to finding more affordable ways to manufacture the product or sourcing less expensive materials.  

“If your long-term strategy is to gain market share by having the highest quality products on the market, while you just solved staying profitable with a short-term plan, you are now risking increased warranty claims and customer complaints on product functionality down the road,” Free said. “And, you have also abandoned the long-term strategy that has brought you so much success.”

Another area of short-term strategy with long-term impacts: labor. With companies facing a backlog of orders stacking up and a shortage of people on the shop floor, desperate times can resort to desperate-feeling measures. The labor demand in manufacturing companies today is pressuring companies to lower their hiring standards.

“A long-term strategy doesn’t always have to be monetary,” Free said. “One of your long-term strategies could be around the culture within the company. If you tailor your hiring methods to sustain short-term success, you may see down the road the company culture that attracted top talent has diminished. You now have high turnover and low morale within the workforce.”

A Case for Marrying Short- and Long-Term Goals

Amazon is perhaps the best example of aligning short-term goals with long-term strategy. Amazon did not profit—or showed only minimal profit—for years in its beginning. It was focused on its long-term growth strategy. 

Amazon assigned greater importance to growth and customer acquisition than short-term profits. They kept their prices low, sometimes to the point of losing money, but these short-term tactics aligned with their long-term strategy to own a huge portion of the online sales market. This strategy paid huge dividends in the long run. 

From 2005 to 2015, Amazon’s net income averaged $500 million with multiple years of losses. That 10-year span during which the company implemented short-term goals that aligned with their long-term strategy led to their success over the following five years. From 2016 to 2020, net incomes soared in consecutive years from $2 billion, to $3 billion, then $10 billion, $11 billion, and $21 billion.

Had Amazon chosen profits over growth, they may not be the disruptive and industry-redefining force of the online age that they have become.

Fluidity and Alignment are Essential in Planning

The key takeaway for businesses: Review your company’s strategic plan annually, especially in volatile climates like this one.

“Your plan should be dynamic and fluid to change,” Free said. “If you are trying to acquire top talent, then remote work opportunities might be part of your strategic plan. If you are trying to reduce cost, then investing in technology and new machinery can be part of the plan.”

Above all, he said, you must make sure that the current strategy in place aligns with the vision and mission that your company has defined and not just a plan to weather the storm. 

KCoe Isom works with manufacturing plants across the United States. Travis Free, CPA, is a financial business advisor that helps manufacturers evaluate short-term solutions and align them with long-term strategies to overcome challenges and capture opportunities.  

Independent sales representatives, or sales reps, solicit sales for a company that does not employ them. Sales reps typically are assigned a particular territory and earn commissions on their sales rather than a salary or wage. As such, they commonly are treated as independent contractors rather than employees and are not eligible for benefits such as the company’s health plan or paid time off.  

Perhaps the most important category in the contractor test is behavioral control, which includes control over how to do the work, rather than simply the outcome, control over the location and time of the work, and training.

Though this may be a convenient way to sell products, sales rep relationships can create legal risks. In particular, the classification as a contractor (rather than employee) may come into question, whether by the sales rep or a government agency, such as the state unemployment office. Additionally, various states have statutes that govern key terms of a sales rep agreement, such as notice of termination and when commissions must be paid.

Contractor Classification

While the tests for contractor status vary by jurisdiction and area of law, there are common themes to all of them. Note that a contractor agreement does not trump these tests, so if a sales rep’s contractor status comes into question, a court or government agency will evaluate the status even if the parties agreed to a contractor relationship on paper.

Behavioral Control

Perhaps the most important category in the contractor test is behavioral control. Factors indicating behavioral control include:

Control over how to do the work, as opposed to caring only about the outcome of the work.

Control over the timing or location of the work.

Training provided to the sales rep.

Financial Control

Here, the overarching question is whether sales reps operate like they are running a business rather than relying fully on the employer for income. Factors include:

The extent to which sales reps incur unreimbursed business expenses or invest in tools, equipment, or other fixed
costs.

The extent to which sales reps make their services available to the market, not just one business.

How the business pays sales reps (i.e., 1099 v. W-2; commissions vs. salary or wages).

The extent to which sales reps can realize a profit or loss based on their hard work and business acumen.

Type of Relationship

This category asks whether the employer and sales rep operate at arm’s length like a company and vendor. Some of the factors in the category include:

Whether the employer and sales rep have a written contract with commercial terms.

The duration of the relationship, as contractors typically complete projects while employees work indefinitely.

The extent to which the sales rep performs services that constitute the regular business or operations of the employer, or work side-by-side with company employees.

Contractor misclassification can result in a variety of claims, such as back taxes from the IRS or unemployment office, workers’ compensation, or discrimination.

Sales Rep Statutes

Additionally, various states dictate contractual terms for sales reps. Minnesota’s sales representative statute is a good example. It provides that a company cannot decline to renew a sales rep agreement without 90 days’ notice and can only terminate a sales rep agreement with 90 days’ notice and an opportunity to cure.

Furthermore, the sales rep must continue to be paid for commissions earned during any notice period, regardless of whether the products have been shipped. Both provisions may conflict with the parties’ contract terms, in which case the statute—not the contract—governs the parties’ relationship. And, if the parties fail to maintain a contract at all, then a 180-day notice period is required to terminate.

Ultimately, sales reps can be a valuable resource to an organization, when done correctly. Organizations should review their relationships with sales reps to ensure that they are properly treated as independent contractors and the terms of the relationship do not run afoul of any local sales representative statutes. 

David James and Joe Schmitt are shareholders in the labor and employment group at Nilan Johnson Lewis.

Association members are entitled to 60-minute, no-cost, confidential consultations with the attorneys. Call the firm at (612) 305-7500.

Mark Hoffman is a mechanical engineer, a businessman, and a farmer. He is the son of the late Chase Hoffman, with whom he happily shared a farming, dairy, and general contracting office for 25 years. Mark is also father to Sam, Kat, and Drew, with whom he works today.

Hoffman is the owner and president of Tillage Management, Inc. Sons Sam and Drew Hoffman are also mechanical engineers. Sam works in the family’s manufacturing business. Drew runs the family’s farm. Kat Coombes, whose expertise is in environmental science, leads operations for the company.

Each family member brings his or her own career story. Mark was an automotive engineer, then a general engineering contractor and farmer. Kat worked in climate change education and environmental mediation. Sam worked for a company that designed and sold natural gas pipeline equipment all around the world. Drew earned his degree and returned to the family farm for what he intended to be a five-year stint. That was 10 years ago.

Today, they are working together to create tillage equipment that simplifies farming and improves efficiencies. Drew, while not in the office, is their go-to resource in their perpetual pursuit of identifying ways to make the equipment better. Working with him at the farm is foreman Carlos Gonzalez, who also supports the company by visiting customers’ farms to demonstrate the equipment. 

“Our equipment has always been fairly modular and had interchangeable parts,” Kat said. “We are increasing that modularity so every grower can pick the perfect length, width, and set-up for their operation.”

The design of the equipment is also intended to make it easier for the solo farmer to repair or adjust the equipment in the field or orchard.

“ Working together as a family is an experience unlike any other. This is full transparency. We trust one another and take risks together. It helps us develop products more quickly because we are so honest with one another.” — Kat Coombes

The Company’s Early Evolution

In 2006, Mark started a company to produce the OPTIMIZER, an 18-foot-wide one-pass tillage implement that reduced several field passes to one or two, with the objective of streamlining design and amplifying consistency in order to manufacture the equipment more efficiently. 

Sam joined the business in 2009 and further refined the design again for ease of manufacture. He also designed a smaller 12-foot version of the 18-foot OPTIMIZER. With the reduction of row crop farming in California due to the uncertainty of water, he then got to work creating a piece of equipment better suited for orchards. It was a natural next step.

The family has been farming in the San Joaquin Valley since 1958. They started with dairy feed crops, cotton, and wheat. In the late 1970s, the Hoffmans started to plant pistachio trees, and today, the farm is primarily orchards.

“I was just not satisfied with the equipment we had for orchards,” Mark said. “We were using the standard stuff that was available, and it would have issues from plugging to poor surface finish. It just never did what I wanted it to do in the field.”

So, he and Sam went about making something better. Their design used the lessons learned from the 50,000-pound open-field equipment to produce a 10,000-pound orchard unit. 

“The orchard equipment takes all of the components of the large machine and streamlines it,” said Kat, who joined the company in 2012. “The open field equipment has 10 or 11 rows of tillage parts. The orchard units have three to five. There are horsepower limitations in orchards and turning challenges. This equipment helps account for those.”

The engineers also designed for a smooth finish, clean dirt lines, and a just-so range that did not disturb herbicides under the trees but got as close as possible.

“It is not traditional orchard equipment,” Kat said. “People look at it and are curious.”

The Company Today

Business is good for Tillage Management, Inc. Mark said demand rises in tandem with fuel prices because their products are fuel-efficient.

“One of our customers told us his accountant came to him and said, ‘You missed something, because last year you spent $30,000 or $40,000 more on fuel,’ and the farmer said, ‘I didn’t miss anything, that’s my new tillage equipment,’” Mark said.

But, like every member company, finding the people to build the equipment is a challenge, and inflation is a threat.

“The higher material prices have been awful,” Kat said. “We have absorbed as many supply costs as we can, but that can only go so far before you have to pass it along. Despite that, I’ve been pleasantly surprised by our customer response.”

The company’s equipment has a higher price point compared to some competitors, Kat said, but farmers choose it because it saves them time in the field, which of course translates to dollars saved for the customers.

Looking Ahead

The engineers at Tillage Management, Inc., are continuing to tinker. They are working on a piece for particular orchards that will create a better finish. They are also exploring how to make products compatible with autonomous tractors.

“Tractors require input. We are figuring out how to read the status of a moving part on the implement, translate that status into some sort of message, and send that message to the tractor,” Mark said. “We are already in a good starting place with the equipment being so low-maintenance and easily adjustable.”

Regardless of what’s in store, the Hoffmans intend to pursue it together.

 â€œWorking together as a family is an experience unlike any other,” Kat said. “This is full transparency. We trust one another and take risks together. It helps us develop products more quickly because we are so honest with one another.” 

About Tillage Management, Inc.

Founder: Mark Hoffman
Year Founded: 2006
Location: Tulare, Calif.
Number of employees: 20
Joined the Association: 2017
Website:

Dealers ended a COVID-infected 2021 on somewhat of a bright note. Equipment sales were, for the most part, steady, and dealers could sell virtually all the inventory they could secure.

New inventory, however, was scarce, and often on allocation by manufacturers.

Overall, dealers ended 2021 on a solid financial footing.

As we end the first quarter of 2022, it looks like a repeat of 2021. Dealers will continue to face challenges this year. I would suggest the following four challenges to be of primary concern for equipment dealers in 2022. Those dealers that can navigate these challenges should find another profitable year in 2022. The four challenges, in no particular order, are:

• Inventory shortages
• Dealer consolidation
• Dealer personnel
• Government laws and regulations
• Inventory Shortages

Inventory will be a critical factor for dealers in 2022. Dealers with plenty of equipment on order will find many of those orders will not be fulfilled. I am told that planter, combine, large tractor, small engines and a large variety of equipment will either not be produced or not arrive in time for distribution to the dealers.

It will take time to get things back to normal as manufacturers struggle with component suppliers, steel suppliers, and all matter of other issues that go into the finished equipment products. Dealers must brace once again for allotments of equipment, parts shortages, and a dwindling of good used equipment in the market to supplement sales or use to serve customers.

Dealers must continue to order what they need to meet manufacturer performance requirements, even if that equipment cannot be delivered. Dealers can expect some equipment to be delivered after the season in which it would likely be sold has passed. This will present challenges for the following months or into the next season and may influence the following year’s order calculations.

Consolidations and Mergers

Dealer consolidations and mergers show no signs of slowing down. Whether the pressure to merge, sell or consolidate are internal or external, it will be felt across the U.S. and Canada. Our dealers are aging, customer bases are decreasing, and the capital and geography needed to efficiently, profitably operate dealerships are changing.

While there are some great younger dealers taking over family businesses, external pressures affect many of these transitions. Additionally, the talent needed in dealerships today is more diverse than it traditionally has been. Technology is pervasive in the equipment that dealers sell, and specialists in this technology are needed to serve customers.

Dealer Personnel

This leads directly to the next challenge: finding not just people to work in the dealerships but good people. And, not just good people, but young people.

I do not know of a dealer in North America who could not use three or four more good technicians today. I read in a recent survey that the average age of dealership technicians today is 57. (Don’t ask me to send that to you as I am certain I couldn’t find it, but it shocked me enough to remember it.)

I follow enough dealers on social media to see they are celebrating far more send-offs for long-time employees than they are new hires, and many of those retirees are technicians. To further complicate the problem, our industry competes with trucking, marine, aircraft, automobile, and so many other industries for these same individuals. Dealers must make themselves attractive to these young technicians in pay, benefits, and working conditions to get these young men and women into their businesses.

Technicians are not the only employees needed today. I mentioned technology earlier. Dealers need these folks as well. As dealers grow, store managers, parts managers, service managers, social media/marketing managers, and so many other types of employees are needed. I see signs begging for workers in my community, and I know that is the norm throughout the U.S.

Suppliers and manufacturers are also battling to find good workers. I am certain you have heard or experienced the story of a business hiring a new person that shows up for a few days then decides not to come back. I can’t tell you the number of times I have had dealers and manufacturers tell me a similar story.

Finding good people, retaining good people, and creating a pipeline of talent will be a huge challenge for dealers in 2022 and beyond.

Laws and Regulations

My last challenge for dealers is a big one: government laws and regulations.  It has been a challenge for several years, and the threat is growing.

Let me start with the threat of a misnamed issue: Right to Repair.  This is a blatant attack on dealers and manufacturers from various groups that want to modify equipment beyond what the equipment is designed to do. Why do I say misnamed? Because I am not aware of a dealer that does not sell parts over the counter to customers that take those parts back to their farm or home and fix their equipment.

I believe that well over half of the parts sold by a dealership leave with customers. We believe in a customer’s right to work on their equipment, and dealers provide customers manuals, tools, and equipment through their manufacturers.

We do not support the right of the customer to modify the equipment beyond manufacturer specifications or to bypass safety or emissions equipment mandated by the government.

The threat of the current administration entering this argument by invoking anti-competitive behavior by manufacturers and dealers has raised this threat to a new level. Ironically, much of what customers wish to bypass are government mandates that limit the equipment’s performance.

The right-to-repair issue and the recent lawsuits against John Deere alleging anti-trust behavior are serious threats to dealers and our entire industry. Dealers must engage—this year and beyond—in protecting against governmental laws and regulations that would have a disastrous effect on their businesses and our industry.

Much is good in the industry, of course, and we have never encountered a challenge that we did not meet. I am certain our dealers will meet these challenges, and we will do it working together. 

Kim Rominger is the president and CEO of the Equipment Dealers Association, a position he has held since July 2017. In this role, Rominger oversees day-to-day operations of the association and its foundation, including activities involving manufacturer relations, government relations, membership, communications, and marketing. Rominger also acts as President and CEO of the United Equipment Dealers Association, a regional equipment dealer association representing Kentucky, Indiana, Ohio, and Michigan.

As a grant consultant, I have seen ebbs and flows in federal and state grant funding over the past few years, but the agriculture sector may have seen more changes in the grant landscape than most industries. These changes were good news for grant seekers.

A handful of factors are influencing this increase in funding.

First, during the pandemic, many states began (and continue) to offer programs to help farmers and manufacturers of agricultural machinery mitigate the impact of COVID on their businesses and improve local supply chains.

The pandemic also exposed fault lines in how services were distributed and led grant-makers to intensify their focus on previously underserved rural communities and their manufacturers.  

Finally, states and the federal government have begun offering incentives to small processing operations to help them maintain competitiveness and increase the supply of meat and poultry. This is the result of large producers putting undue pressure on small operations and, in many cases, forcing them out of business. This likely will lead to increased equipment purchases by both these facilities and the farmers who supply to them. 

 Members of this Association have an opportunity to secure grant funding. Let’s discuss the specifics, including what a grant is, what activities qualify for funding, what funding is out there, and who is eligible.  

What is a Grant?

Grants are funds paid to a company (non-profit or for-profit) for a project with well-defined outcomes that align with the goals of the organization providing the funding. Grants do not have to be repaid unless the recipient doesn’t do what they said they were going to do when they applied for the grant.  

State economic development departments and federal agencies such as the USDA, National Science Foundation, Department of Labor, and Department of Commerce fund most manufacturing grants. They require economic benefits such as job creation, new technology, and workforce skills enhancement.  

Types of Grants

Organizations that award grants to manufacturers have these focus areas:Ìę

• Training grants to fund workforce development programs (internal and external) to raise employees’ skill levels. 
• Export program grants that cover costs that farm equipment manufacturers incur to expand their overseas presence, including:
• Trade shows/missions.
• Translation of marketing and instructional materials into other languages.
• Certifications to sell products in overseas markets.  
• Grants to offset the impact of trade imbalances, which cover services farm equipment manufacturers acquire to be more competitive on the global marketplace.  
• Rural business development grants that fund investments in energy efficient equipment and renewable energy to spur economic development, profitability and competitiveness.
• Market expansion grants to fund equipment, prototyping, and research and development that will help farm equipment manufacturers diversify their markets and expand sales.
• Business attraction grants, which states offer companies to entice them to pursue large investments and job creation.
• Grants that fund partnerships between farm equipment manufacturers and educators or workforce development entities to:
• Create or expand apprenticeship programs.
• Implement large-scale workforce development initiatives.
• Create career pathways for underserved individuals. 

Funding Sources

The USDA Rural Energy for America Program (REAP) provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to improve energy efficiency.

Agricultural producers may also apply for new energy efficient equipment and new system loans for agricultural production and processing. Grants of up to $500,000 are offered on a rolling basis. Go to FarmEquip.org/energyefficiency to learn more.

The Connecticut Manufacturing Innovation Fund Voucher Program provides companies access to capital to help them obtain new equipment and the expertise they need to become more efficient, productive, and competitive. First-time applicants receive funding equal to a 1:1 match for the first $25,000 and a 2:1 match for remaining funding up to $75,000. Go to FarmEquip.org/innovationgrants to learn more.  

The Illinois Employer Training Investment Program (ETIP) has funds to distribute through the end of June to support workforce training. Manufacturers may qualify for up to 50 percent reimbursement for full-time, Illinois-based employees. Learn more at FarmEquip.org/Illinoisgrants.

Who Qualifies? 

Most farm equipment manufacturers can apply for any (or all) of the opportunities mentioned here if they meet these criteria:

• A strong and sound financial history. (It is difficult for startups to receive grants.)
• Business presence in the state offering the grant.
• Willingness to meet reporting requirements.
• A clean legal history, especially for owners and top-level management.

The ability to match a percentage of the grant awarded in cash or other means, if the funder requires it.

In my experience, most manufacturers don’t apply for funding because they don’t know how to get started, which is why I created the Manufacturing Grant Database. (Find it at FarmEquip.org/grantdata.) 

This easy-to-use database allows you to search by federal and state opportunities as well as funders aligned with your projects. The database is updated monthly so you don’t miss out on the ever-changing opportunities available to manufacturers. And, you can get assistance with one click!  

To subscribe, visit FarmEquip.org/grantdata and enter the promo code FMA22 to get 20 percent off the monthly subscription price. 

Micki Vandeloo is president of Lakeview Consulting, Inc. The mission of Lakeview Consulting is to ensure economic prosperity for America’s workforce by providing grants to manufacturers that spur economic development. Contact her at micki@lakeviewconsulting.com. Vanderloo also presented a webinar to members on securing grants. Watch it at FarmEquip.org/library.

Making the leap from individual contributor to manager can be fraught: for the new manager, their direct reports, and the organization as a whole. New managers tend to rise into their position based on past success. But few have the experience or training to effectively manage a high-performing team.

This is a huge problem for organizations large and small, according to Steve King, an adjunct professor of executive education at Kellogg and former executive vice president of human resources at Hewitt Associates, where he oversaw HR for the firm’s 25,000 associates.

“Senior executives count on frontline managers to make things happen,” King says. After all, the vast majority of a firm’s employees report to frontline or middle managers, not those at the top of the organization. Yet, executives often overlook frontline managers’ need for clear guidance and direction about change efforts.

Leaders often mistakenly presume that managers are already trained and proficient at rolling out changes with their teams—and that the benefits of the changes they are proposing are self-evident—so there is little need to explain or clarify things to managers and teams.

In King’s view, new managers need to master three critical skills to succeed in their roles.

Know What Kind of Team You Are Leading

Frontline managers need to understand whether their team is comprised primarily of individual contributors or whether it is highly collaborative. And then, they need to set goals accordingly.

“For example, a wrestling team and a football team have a very different kind of team dynamics,” King says. “They’re both teams; they just need to be managed differently.”

Some sales leaders set revenue goals for each salesperson and offer financial incentives for their individual efforts. Others set team revenue goals and reward the team when they collectively hit their target. Neither approach is inherently more effective, but the team approach drives greater collaboration.

Early in the pandemic, teams comprised of individual contributors were more nimble than highly collaborative teams because they had already established processes to work independently, come together as a group, and share information. Interdependent teams that relied on face-to-face interactions had to establish new ways to collaborate.

But individualized teams require special attention, too. Many frontline managers fail to articulate what King calls “metagoals,” or the shared goals among individual contributors. If individual contributors don’t see their work in the context of the company’s larger goals, it’s easy for conflict to arise. It may also be a sign that the team 
 isn’t really a team.

King recalls a manager tasked with coordinating three groups to work together on a project. After a lot of pushback from the groups, the manager realized they had failed to define their common goal. This led to a robust conversation where all the parties concluded that there was no common goal.

“In the end, the groups needed to act independently on three different goals,” King says. “They were, in fact, three separate teams. We’re trained to think ‘one organization, one goal,’ but that isn’t always true.”

Know How to Establish Clear Goals

The promotion from individual contributor to manager often comes with a reality check: managing teams means dealing with tough interpersonal dynamics, from trust issues to personality clashes to competing ambitions.

“Many managers mistake these conflicts for personality clashes,” King says. “But more often than not, what presents as a relationship problem—people blaming one another, bad group dynamics in meetings—is the result of the manager failing to clarify the team’s goals.”

Managers also have to ensure that team members understand the process for achieving these goals—and especially which team members are empowered to make which decisions. By clearly stating which team members can decide on a course of action ahead of time, managers preempt disagreements.

Say, for example, two team members are tasked with handling a company’s marketing initiative. If both people think they have the right to make decisions about the tone of the outreach emails, their manager has set up a situation where conflict can easily arise. Being clear about who holds the “decision right” will decrease the likelihood of conflict.

King stresses that such alignment is especially key when the team’s goals shift. Managers should explicitly state what has changed and the ways these changes will impact the team, as well as individuals.

“Teams have learned this lesson as we’ve grappled with Covid,” King says. “Supply-chain issues have prompted changes in goals, which has meant changes in work processes and team-performance expectations.”

For example, if a revenue target shifts from $500K to $300K, the manager can say, “‘We have a new goal here. Let’s talk as a group about how we’re going to achieve it and what roles everyone is going to play in getting that done.’”

With goals in flux and work processes being revisited, frontline managers need to dedicate time to identifying any stressors that might bubble up under the surface and disrupt team dynamics.

Teams Need Feedback, Too

As customary as it is for managers to set clear, appropriate goals for their team members, those same managers often fail to provide regular, clear feedback to the team as a group. This is a missed opportunity for ensuring and advancing broader company goals—and for coaching the team on how it can achieve those goals.

King recommends bringing your team members together quarterly to give them feedback on areas including how they are progressing toward their goals, how well they are handling changes to work processes, or how they might have more successfully collaborated on a project.

“When I managed teams, I used those moments to let team members share their feedback on team performance as well as feedback to me about my management of the team,” King says. “The same parameters about giving good feedback apply to groups as to individuals: Be clear, concise, and specific with your comments. And make sure to come prepared with examples and plans for improvement.”

Incorporating team feedback into routines is a straightforward way for managers to improve their effectiveness and keep their teams engaged. At a time of high employee turnover, keeping your team on the same page can help prevent the frustrations that may lead to individuals heading for the exits.

“Frontline managers are the foot soldiers of talent management in organizations,” King says. “When managers get team management right, it’s to both employees’ and the organization’s benefit.” 

This article originally appeared in Kellogg Insight, a publication of Northwestern University. It is used with permission.

Stephen King is Adjunct Professor of Executive Education at Kellogg School of Management at Northwestern University.
Susan Margolin is a freelance writer based in Boston. 

We all witnessed signs of improvement when 2022 started. Supply chain was flowing better and employee applicants were starting to come through the door. 

I visited with many of our peers at the National Farm and Machinery show in February. Everyone had the same opportunities (which also may be appropriately deemed “challenges”), but we had a more optimistic view for the future.

Then Russia invaded Ukraine. At first nothing seemed to be disrupted, but after a few days, we all started receiving the phone calls and emails from our foreign suppliers. Some were saying they wouldn’t be able to get materials; all of them said prices were going up. Here we go again!!

What do we do? How do we prepare for the future? When will this hyper demand for our products slow down? I wish I could answer your questions, but it would be purely speculative. I do know one thing: You can help yourself by getting involved in the Association.

Get Involved! 

We have all been extremely busy taking care of our customers. The opportunities confronting us change each day. We must not forget our importance to agriculture. We are the innovators that help determine the future of how our customers work. We have the strength and voice to shape our industry, which ultimately influences the business of farming. Our čû¶łŽ«Ăœ is strong and robust, but if we don’t take the time to volunteer our talents and insights, then we will start to wane.  

How to Get Involved  

Reach out to the Association staff or any member of the Board of Directors. We are listed in the left column on page 3 and in every issue of Shortliner. You also can find us at FarmEquip.org. The Association has several committees and councils, which work continuously to make our Association and industry better. This is an excellent entry into influencing the direction of the industry. Our board is comprised of 16 talented and diverse individuals who have devoted their time and talents to represent you, our members. We have a Nominating Committee that is chaired by Ric Kirby. If you have interest in being a board member or want to recommend someone, please reach out to Ric (rmk@kirbymfg.com) or me (tim@worksaver.com).

Benefits of Getting Involved

As with anything in life, you get out what you put in. Personally, I have gained a lot of knowledge, insights, and life-long relationships that have helped our company grow and evolve. The greatest resource our Association has is you.

In my opinion, our industry is made up of the most genuine and helpful people. I cannot begin to explain how many times I have reached out to our members with questions about supply, production, distribution, etc. Almost always, I get valuable advice and move closer to solving our problem.

We have all experienced a lot of stress these past two years. It has been reassuring to talk with our members and realize we all are having the same issues. Our support of each other has never been more pronounced, welcomed and appreciated.  

The future is uncertain, and quite frankly, scary. Together, we will make a difference and evolve with whatever changes are coming. With you, this industry and this organization will thrive! 

Sincerely,

Tim Burenga
Worksaver Inc.
2022 Association President

by Tim Marks 

Developing a successful social media strategy can be daunting, but it is a tool that is increasingly pervasive in this industry and beyond. We offer a few tips here to help you get started.  

Farm equipment is naturally suited to video. Seeing equipment in action can help sell it. The tips here focus on video-centric marketing but apply to other forms of influencer marketing as well. Let’s start with a few definitions. 

Manufacturer Channel Marketing

This refers to creating your own presence on YouTube, TikTok, Facebook, and other platforms to advertise your products. This approach works well for purposes such as sharing a well-done installation video to show potential customers how a product works.   

Developing a popular manufacturer-centric channel, however, is extremely difficult. Only one of our sponsoring partners has done well with this approach: Ventrac. This kind of success (85 million views and 116,000 subscribers) is rare for a manufacturer and is due to their in-house team of highly trained videographers. 

Social Platform Advertising 

Most platforms offer some sort of integrated advertising. For example, YouTube runs “pre-roll” advertisements before and sometimes during videos. Advertisers can target a specific audience by zip code, time of day, key words, interests, and even the channel where the ad appears. However, like the manufacturer channel marketing, you will be responsible for shooting and producing the ad content.

Both strategies have pros and cons.

Among the pros are full control of the content/message and low-cost. It is free to post content to your own channel, and assuming you target your audience closely, advertising on YouTube or Facebook is inexpensive as well.

High on the list of cons is that, unfortunately, you are on the hook for creating the content. You will need:

• All the equipment (tractors, your product, other attachments)
• Suitable location
• Appropriate camera, audio, and lighting equipment
• On-camera personality (“The Talent” as they say!)
• Post-production (Editing)

You can subcontract some of this, but not all of it. Gathering the equipment, setting it up, and finding the location is up to you. In our experience, this can be more difficult than you expect.

Another significant con: lack of trust. “Of course, the manufacturer says it works well!” – said Every Potential Customer ever!

It is difficult to overcome consumer skepticism. While you theoretically have full control over your content, there are practical limitations. Are you really going to point out a weakness of your product? Doing so raises risks. Not doing so verifies the customer’s skepticism.  

To add to the con list: limited feature demonstration.

Will you show your product used to its extreme potential? Will you show your product used in a way most people use it, even if your legal team says to avoid it? For example, your brush mower is rated at 1.5 inches. You are quite confident in its ability to handle larger brush, but, showing that in your product advertising might expose you to unnecessary warranty claims, lawsuits, or other costs down the road.

Influencer Marketing

Partnering with influencers flips these pros and cons on their head. We’ll go through the pros and cons soon, but before we get there, we’ll explain the basics. 

What is an “influencer”?

We are all “influencers” at some level. This week, we encountered a frail 80-plus-year-old leaning on her cart in a warehouse club. She was loading “pineapple spears in coconut water” into her cart and said, “These are so good! I eat the spears, then when finished with them, I drink the coconut water! I love them! I think I’ll get a couple more jars
”

We had no intention of buying pineapple spears, but we left with a jar anyway! Why was that?

We were sold by the trustworthiness, passion, and authenticity of the woman leaning on her cart. She clearly had experience with the product. She was not wearing the company shirt. While her presentation wasn’t flashy (frankly, she could hardly hold up the jar), her passion convinced us on the spot.

Social Media Influencer

While the Pineapple Grandma influenced a purchase, she is not going to be a social media influencer. Influencers of this sort have loyal followings—folks who enjoy watching their regularly produced content for educational and entertainment purposes. Most social media influencers have a niche focus such as a hobby or a subject of special relevance to them.

Social media influencers bring benefits to companies seeking to work with them. One obvious benefit is that the influencer handles the content creation process, which involves: 

• Video equipment   
• Cameras
• Audio
• “The Talent,” someone who is comfortable in front of a camera and capable of holding the audience’s attention
• Post-production editing and publishing
• Maybe (if negotiated) raw video footage for the manufacturer to use as they wish

In farm equipment marketing, an influencer will likely provide:

• The tractor(s) or other prerequisites
• A real-world filming location

The “project storyline,” which means showing the product in action or solving a real-world problem.

As you would expect, the value you gain from using an influencer comes with compromises. 

Among them: You surrender content control. To protect authenticity, the influencer must be allowed to speak freely and share whatever opinions they wish about the product.

In our experience, manufacturers consider this a high risk, but the risk is overestimated. While a manufacturer can be temporarily negatively impacted by an inflammatory negative review, the influencer’s reputation would be destroyed. Afterward, no company would work with the influencer. The influencer often bends over backward to praise the product. Most quality influencers are excited to be in partnership with a quality manufacturer and want to maintain a good relationship.

Manufacturers also risk sending a piece of demo equipment to an influencer in good faith and never seeing a video published. Manufacturers throughout the industry have experienced this.

Another concern to consider is inappropriate behavior. Influencers depend on view counts. It’s quite tempting to push the envelope to gain views. Depending on the depth of the partnership, your brand name may be associated with the behavior of your partner influencers.

Overcoming Risks

Each of these risks can be mitigated.  Let’s dig into how to select a good influencer partner.

An influencer partnership is like a marriage. You deal with each other’s strengths and weaknesses. You cannot ask the influencer to be someone they are not. And, you get both their good points and their failures. It is much easier to enter the relationship than
to exit.

So, like in marriage, we advise you to select carefully. We’ve had folks call us asking to partner with us having never watched one of our 900-plus episodes. Rather than selecting the first influencer you find, we encourage you to invest significant time and effort into this process.

Subscribers and views are only surface level. We recommend that you instead focus on deeper traits.   

Successful social media influencers are trusted by their communities, authentic, and knowledgeable in their field. They may not be the most polished, or even the most popular, but they are real!

Character and trust are important both on camera and behind the scenes, because influencer agreements are often informal. Contracts are helpful in some situations, but much of the interaction is fluid, changing frequently as opportunities present themselves. We also recommend that you evaluate the personality of the influencer. Is their on-screen persona consistent with the values of your organization? Don’t expect to change this aspect of the influencer.  

Ask yourself if an influencer’s niche audience fits your product. Watch existing videos from an influencer you are evaluating. Do they address topics that would be interesting to your prospective market? You need to reach those few who could benefit from learning about your product rather than worrying about audience size.

Speaking of audience size, it is common for those new to social media to equate audience size to number of subscribers. This is not accurate. For example, our channel has 180,000 subscribers, but we are watched by more than 1 million unique viewers in any given 90-day period. This number is not publicly visible, but you can use other techniques to estimate audience size. We recommend looking at the following public statistics:

• Total views on the channel
• Sort videos by date descending to evaluate views per video on the last 30 to 50 episodes.
• Sort videos by “most viewed” to check for one or two videos which performed well while all others performed poorly.

You will have the best results with a channel which consistently gets a good number of views with an occasional standout video. 

Getting Started

Some companies start by sending equipment to as many channels as possible. Instead, we recommend carefully choosing only one influencer in your niche. After you have successfully worked with that influencer for a year or more, you might be ready to find a second. We recommend involving your first influencer in this decision. Remember, influencers are in a competitive business as well, and reaching out to a direct competitor can damage your relationship.

Your second influencer should represent a different niche. For example, our channel focuses on compact tractors and attachments. Another channel might focus on wood-cutting but use compact tractors. Another channel might focus on hunting and use compact tractors to create food plots. Another might be a farmer.

If you are selling brush mowers, each of these channels would be able to show your product, but they would not be direct competitors. Each influencer with a different focus will broaden the exposure to your product. Selecting two influencers in the exact same niche and likely sharing the same audience will be less effective and potentially cause competitive conflicts.

Influencer Compensation

This is not a one-size-fits-all process. If you sell online, a commission approach works well. If you use a dealer network, a monthly retainer can work. In some cases, the equipment itself can be the entirety of the compensation. Every situation is different. 

If you find a quality influencer partner, make sure that you consider the total value they provide. What would it cost to get quality close-up video of your product in action? Several different applications over time? Don’t hesitate to compensate them well. A relatively small marketing fee from your company could make a huge difference in the quality of the ongoing relationship. 

Get in touch with Tim Marks at Tim@TractorTimeWithTim.com. Call him or send a text message at 317.689.8625. He and his wife Christy would be happy to help you make that first step into social media marketing, even if you’re outside their niche. Oh, and don’t forget to try a jar of those  They really are tasty!

The Summit promises to deliver insights you need to navigate 2022 and to connect you to the people who can help you make it happen.

Meet suppliers. Talk to peers who have found creative solutions to problems that plague the industry. Hear from experts on supply chain, the economy, leadership, and more. And, enjoy the city while you form industry relationships that have the potential to accelerate your business and lead you to solutions.

Meet the Speakers

Leadership and Preparedness in the 21st Century

Lt. General Russel L. Honoré (Ret.) helps organizations develop a culture of preparedness and initiates a mindset of problem-solving using strategies that create take-charge leaders.

As the commander of Joint Task Force Katrina, LTG HonorĂ© became known as “The Category 5 General” for his striking leadership style in coordinating military relief efforts in post-hurricane New Orleans.

Gen. Honoré also oversaw the military response to the Space Shuttle Columbia Tragedy and the DC Sniper Shootings.

He is a decorated 37-year army veteran and global authority on leadership. News networks like Fox, MSNBC, and CBS consider him their go-to expert on emergency and disaster preparedness when hurricanes approach the U.S.

He brings a dose of candor with real-world leadership lessons and equips audiences with a preparedness mindset.

Learning from Legacies

The Association will bring back a series in New Orleans in which members learn from executives whose companies have had extraordinary staying power in the industry. This year, we will hear from Heather Bruce and Doug Bruce from Osmundson Manufacturing.

They represent the fifth and fourth generations of leadership in a company that was founded in 1903 and joined the Association in 1977. The father-daughter duo will share lessons learned in transitioning the family business from one generation to the next and discuss how they are navigating universal challenges in the industry.

Economic Outlook: Finding Stability Amid Volatility

Economist and analyst Jim Meil will offer an overview of what’s at play in the economy and what may come next. Meil was vice president and chief economist with Eaton for 29 years.

He has served on the Board of Directors of the National Association for Business Economics and has won recognition from both the Wall Street Journal and USA Today for top economic outlooks from their respective panels of 50 economics forecasters.

Manufacturing Outlook: Supply Chain, Technology, Labor

Baxter Saucier is operations director for the Manufacturing Extension Partnership of Louisiana with a history in industries such as manufacturing and oil and gas. He will explore strategies for strengthening your supply chain, discuss technologies that will reduce your dependence on labor, and more.

Network, Explore

The purpose of Summit is to create business opportunities. The circumstances around those opportunities are as varied as the cities we visit. In New Orleans, you may find a little inspiration around a roulette table or perhaps aboard a boat.

The Supplier Associate member section, which is the Association’s co-host for the Supply Summit & Showcase, has expanded networking opportunities in New Orleans. Take a look at what’s in store.

New Orleans Night Out

The annual crawl will bring members to the French Quarter this year. Fortunately, the entertainment district offers the perfect spot to minimize disruptions related to public health protocols and maximize opportunities to network.

Participants will spend the evening at Pat O’Brien’s—a three-in-one bar in the French Quarter. Attendees will network at a piano bar, patio bar, and indoor bar.

Welcome Party/Casino Night

The traditional Summit opening event will be dialed up a notch this year with a no-risk casino night. The Wednesday night party will include seven blackjack tables, a regulation craps table, roulette table, and Texas Hold’em table.

Attendees will bet with chips. At the end of the night, convert those chips to raffle tickets to win prizes.

Casino night is 6:30 to 9 p.m. Wednesday and includes heavy appetizers. Stay tuned for details about prizes.

Fishing Excursion

Cast your lines in Louisiana’s intercoastal waterways and reel in redfish, speckled trout, flounder, drum fish, and sheepshead, then gather at a nearby restaurant, where they’ll cook what you caught.

The fishing excursion launches from Shell Beach, La. Participants will leave the hotel at 5:30 a.m. Tuesday and return around 2:30 p.m.

The captain’s boat is a 25-foot bay boat with a 300-horsepower engine, which is comparable to other boats in the fleet. Each boat will carry three or four Summit attendees.

The excursion costs $330, which includes transportation, fishing, and lunch. Participants must buy a $10 fishing license in advance. The Association will provide a website link to buy the license.

Participation is limited, and registration closes mid-February.

Golf

Participants will play the South Course at Bayou Oaks City Park.

The course sits on more than 250 acres that have been restored and were reopened in 2017. It features many of the historic oaks and lagoons characteristic of City Park. The par-72 course is designed to accommodate all levels of play. It stretches from a 5,100-yard course from the short tees to a 7,350-yard course from the long tees.

This 18-hole scramble is 11:45 a.m. to 5 p.m. Wednesday. Registration is $120. The course has a limited number of golf clubs to rent; club rental is $50.

Trap

Bayou Country Sporting Clays will host Association members for our annual trap shoot. If you have an extra shotgun and are willing to loan it to another attendee, please contact Sarah Stevener at Sarah@FarmEquip.org.

The club only has a few extra guns. The shoot is 11:45 a.m. to 5 p.m. Wednesday and costs $99.

Lagniappe
The Supply Summit also includes the annual walk/run at 6:45 a.m.

Go toÌęÌęto see more information, including the SummitÌęschedule and who hasÌęregistered. If you have questions, callÌę(314) 878-2304.

Among the many challenges the industry faced were hyperinflation on materials and shipping, lack of material availability, extended lead times, shipping shortages and delays, employee health and availability, work attendance, and a monsoon of demand from customers.  We all got creative on how to navigate the challenges, and I feel most of us performed better than in 2020.

So, what does the future hold for 2022? I wish I had a crystal ball to help you with your decision-making, but since I do not, I want to share what we are doing.

Customer Demand

We think the first half of 2022 is going to be strong with customer demand. There is little or no field inventory in the pipeline, there is no reduction of demand from price increases, and our backlog is considerable. After that, it is unclear. You would have to think that inflation will catch up with customers’ cash flow. 

Employees

We are hiring every day. This year we were able to maintain our employment level but not add to it. To combat inflation and retain employees, two bonuses were provided this year.

Supply Chain

Talking to our suppliers, they inform us that costs and delays will continue through most of next year. We have bought domestic supply through second quarter and foreign supply through fourth quarter of 2022. Cash flow is a large concern. The cost for the materials and components is higher, but the unforeseen shipping costs have our eyebrows raised. Currently, some containers are costing $20,000, but that is just to port, then there is another $4,000 from port to our dock.

Expansion

Demand for products is the highest in our company history. We have continued over the last several years with our planned building and machinery expansion. In 2022, we are continuing with that plan, only with more caution. We don’t want to miss opportunities, nor do we want to be overextended when this market corrects itself.

What do we do?

In my opinion, relationships in this industry are critical. One positive thing from COVID is that it has brought our industry together with a unified challenge from supply chain, manufacturing, and distribution. I have never been more uncertain in my career than I am today, in trying to forecast the second half of 2022. One thing I have learned over the years is that talking with our peers, suppliers, and distribution brings a lot of ideas to help us navigate the future.

The čû¶łŽ«Ăœ provides us with these opportunities.

The Supply Summit & Showcase is April 6-8 in New Orleans. The Supplier Board of Governors does an outstanding job providing opportunities to network and puts on a terrific showcase for manufacturers to view their products and services. Our company always leaves the convention with ideas for the future. I encourage all of you to take the time to attend, share your ideas, and walk away with a few new ideas for your company.

Sincerely,

Tim Burenga