Ready... or not

By now, most golf course superintendents should have heard of the EPA’s Tier IV diesel engine emission reduction mandate and how it will impact their budgets. The mandate took effect on Jan. 1, 2013, and impacts all diesel-powered turf maintenance equipment greater than 25 horsepower. The good news? All Tier IV-compliant turf equipment manufactured after Jan. 1, will be better for the environment and healthier for everyone. The bad news? The equipment will cost more.

But there’s more good news. According to Grant Young, director of marketing of the Commercial Division at The Toro Co., turf maintenance is one of the last categories of diesel-powered products to go through the major stage of Tier-IV compliance.

“Because of this, many of our customers have already seen the pricing (and technology) implications of achieving compliance, keeping in mind that the technology drives the cost,” says Young.

Young cites over-the-road trucks, certain power ranges of tractors, tub grinders, construction equipment and forestry as examples of equipment that has already experienced the major “jump” in price associated with the stiffest tiers of compliance.

“So, comparatively, the price of compliance isn’t terribly surprising to anyone who has had experience in one of the other categories, OTR trucks probably being the closest to most,” Young says. “That said, it’s never easy delivering a message of price increase to customers. In the end, it’s a mandatory regulation that has a price associated with it.”

Young expects prices to go up 10 to 20 percent, a number that has been consistent with price increases in other power classifications that have gone through Tier IV.

Reaction from customers so far has been mixed, says Young, depending on their knowledge and awareness of Tier IV.

“Those who have already experienced something around Tier IV due to buying an OTR truck for their fleet (or even personal use), for example, aren’t really phased by it,” he says. “Those who have little or no awareness are more surprised. I would say this is the main reason why we’ve been out trying to message the issue and what it means. The worst thing for the industry is to have ‘surprised’ people as of Jan. 1, 2013.”

Toro has been spreading that message for the last 18 months through industry associations, conferences, electronic and printed materials, distributors and individual customer visits.

“Because this is a major change to turf maintenance equipment, and because capital purchase schedules are usually planned years out, we feel creating awareness to the change and its implications is critical to being a good partner with our customers,” says Young.

Toro’s message has been in four parts: What is Tier IV? Why is it happening? When is it happening? And what does it mean to me (in terms of product performance, pricing, capital budget implications, the environment, etc.)?

Mark Ford, marketing manager of John Deere Golf, says his company has not released pricing for its Tier IV compliant products yet but is sensitive to the concerns in the marketplace that Tier IV could have on pricing.

“With that in mind, John Deere has been focused on bringing maximum value to our customers with new product features and benefits, while meeting all regulations,” says Ford.

Adds Mike Koppen, group marketing manager of golf products for John Deere: “We’re adding value and additional features to our new Tier IV machines that will increase performance, productivity and operator comfort. We’ve undertaken Tier IV as an opportunity to redesign our machines from the ground up to provide an overall better machine that is, at the same time, Tier IV compliant.”

Ford speculates that there may be some short-term sales fluctuations, but in the long term, he expects sales to be largely unaffected.

Koppen says that end-user reactions, in more often than not, are being driven by uncertainty because they largely haven’t seen what a Tier IV-compliant piece of equipment can do.

“When they come face-to-face with a Tier IV piece of equipment, they’re pleasantly surprised by new standards in performance, productivity and operator comfort,” he says.

John Deere has been getting the word out on Tier IV mostly through its dealer channel.

“We have an enormous amount of experience in smoothly transitioning to new emissions standards,” Ford says. “And we have found our best method of communicating changes like this is through our well-trained dealers. They have done very well in so many other regulatory transitions in communicating these changes to our customers.”

Like Toro, Rachel Luken, product manager for Jacobsen, predicts a 10- to 20-percent price increase for Tier IV-compliant products.

“Of course, customers don’t want to pay more, especially when we’re talking about increases as high as 10 to 20 percent for higher horsepower, Tier IV-powered products,” says Luken. “But for equipment manufacturers, distributors and end users, this is a ‘must-do’ in order to comply with federal regulations – the choice is how and when you make that equipment transition and replacement.”

Jacobsen is working on alleviating the higher costs, though, via technological innovation.

“In addition to Tier IV final engine and equipment modification solutions with high pressure common rail and exhaust after-treatment systems, Jacobsen is exploring innovative, non-conventional approaches – where technically feasible – to deliver lower emissions and meet compliance,” Luken says.

As a precursor to the more conventional solutions, Jacobsen has launched the LF510, a new addition to its line of lightweight fairway mowers. Luken describes it as an alternative, simple Tier IV final solution for 100-inch width of cut applications.

“The market also told us it wanted an affordable fairway mower that provides a superior quality-of-cut. We answered that need by putting Jacobsen’s TrueSet cutting units with Classic XP reels on an easy-to-use, easy-to-maintain tractor,” says Luken. “In addition, technicians don’t have to worry about additional exhaust after-treatment filtration devices, technology or service because the LF510’s rugged and reliable Kubota engine is compliant with Tier IV emission regulations.”

Jacobsen has chosen to communicate its Tier IV message through its dealer network using sales and technical training sessions where flyers are handed out as education and reference pieces.

In addition, the company is participating in regional/local GCSAA organization meetings, trade shows and conferences, customer roundtable events.
 

Jason Stahl is a Cleveland-based freelance writer and a frequent GCI contributor.