FTMTA News December 1st

Innovation Award at FTMTA Farm Machinery Show

The November meeting of the FTMTA Executive Council has agreed that an award will be made for the most innovative new product on display at the FTMTA Farm Machinery Show in February. This will be first time that such an award will be made at an FTMTA Farm Machinery Show. The judging process will be independent of the Show organisers and details of how to enter will be circulated to all confirmed exhibitors during December. It is felt that is appropriate to make such an award to reflect the fact that the FTMTA Farm Machinery Show is Ireland’s premier farm machinery event.

FTMTA Farm Machinery Show Tickets

It will be possible to purchase tickets online for the FTMTA Farm Machinery Show through the FTMTA website www.ftmta.ie and further details of this facility will be announced within the next two weeks. In the meantime it is possible to purchase tickets from the FTMTA office by contacting 045 409309 or info@ftmta.ie. Show tickets make an ideal Christmas present for a machinery enthusiast.

FTMTA ProDealer Credit Policy

The FTMTA has recently launched the FTMTA ProDealer Credit Policy which is designed to improve the cash flow position in the farm machinery industry by tackling the long standing issues around credit and debtors in the sector.

The guiding principle of this policy is that credit in all business relationships is a privilege, not a right. That is as true of a farm machinery firm’s dealings with its own suppliers as it is of the firm’s dealing with its customers.

The viability and sustainability of the farm machinery sector overall and of individual businesses is endangered by inadequate control of credit. Many dealerships have levels of outstanding debtors than are totally disproportionate to the turnover of the business. As well as the amount owned there is a substantial problem with the age of some of the debt.

The Association has calculated that it is currently costing many dealerships up to 20% of the book value of their debtors to collect that money. This is made up of staff costs, cost of money and write downs. It seems unlikely that any sector can take such a cost and the farm machinery trade certainly cannot. The sector is one of tight margins with limited availability of working capital finance from banks and much reduced credit from all suppliers.

The FTMTA policy very much allows for the provision of credit but on an agreed and formalised basis. The policy is in no way intended to cause difficulties for customers and in fact the feedback from member firms which have independently moved some way in this direction in recent times is that their customers accept this and understand the realities around the provision of credit by any supplier.

The duty of the Association is to encourage conditions and standards that will deliver a future for member firms and this policy is an important part of that. It is in the interests of FTMTA members’ customers that a viable and local farm machinery industry continues to exist to deliver the support that they require.

Be a part of a stronger farm machinery industry – join the Farm Tractor and Machinery Trade Association – contact FTMTA at 045 409309 or membership@ftmta.ie for details.

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