4 dealer association councils vote for consolidation, forming stronger national organization

The boards of directors of the Equipment Dealers Assn. (EDA), the Midwest-SouthEastern Equipment Dealers Assn. (MSEDA), the United Equipment Dealers Assn. (UEDA) and the Western Equipment Dealers Assn. (WEDA) voted to go ahead with a proposal that would consolidate the four associations. This action is the first step towards consolidation, which requires a vote of the member dealers of each association, which should be finalized in spring 2022.

The consolidation effort was a dealer-led process that began in October 2018, says Tom Rosztoczy, president of Stotz Equipment and president of the long-range planning group that oversaw the process.

Once the consolidation is complete, dealer members of the four associations will experience little or no change in their day-to-day interactions with their association, with the goal of making the consolidation effective on July 1, 2022, Rosztoczy says. The new organization will operate under the name of North American Equipment Dealers Assn. (NAEDA), reverting to the original name of the national association. In 2015, NAEDA was renamed Equipment Dealers Assn. In 2017, Kim Rominger was appointed President / CEO of EDA, while continuing to fulfill the same role for UEDA and linking a national and regional association.

The EDA has had financial problems stretching back to the previous days of NAEDA before it split from regional associations and changed its name, Rosztoczy notes. When he became chairman of the EDA board in 2018, Rosztoczy said he shared his concerns with Rominger.

Long-term planning committee

Dealers who were part of the long-range planning committee that oversaw the consolidation process included the John Deere, Case IH, New Holland and Kubota sites. The merchant members of the committee also varied in terms of the number of stores.

  • President Tom Rosztoczy (Stotz Equipment – John Deere)
  • Ivan Dorhort (EDA President; City and Country Implementation – Case IH / NH / Kubota)
  • Steve Hunt (H&R Agri-Power – Case IH)
  • Joe Nash (Delta Group – Case IH)
  • Jared Nobbe (Sydenstricker-Nobbe Partners – John Deere)
  • Kevin Pawlowski (Farmer’s Equipment Co. – Case IH)
  • Brian Streacker (Streacker Tractor Sales – NH / Kubota)
  • Arthur Ward (Pattison – John Deere)

“We were in financial difficulty and we had a feeling of competition with the regional associations, which is not healthy. There has to be a better way to do it, ”he said. “So the EDA board decided to have the dealers come into a room and see if they could come up with a smarter way to do it.

“All regional equipment dealer associations have been invited to participate and contribute to how we can have a strong national association, while positioning our organization to meet the changing needs of equipment dealers across America. of the North, ”he said.

Financial stability

One of the most obvious benefits of consolidation is financial stability, note Rosztoczy and other dealers. Merging into one organization will eliminate a number of costs and duplicate processes. For example, all 4 associations must have audited financial statements. Having just one audited financial statement saves $ 100,000 per year, says Rosztoczy. By eliminating the regional associations involved, rented offices can be eliminated and regional executives can work from home.

“If you just take the very simple economic synergies that you’re creating, that’s a significant number compared to EDA’s current financial position,” he says.

Steve Hunt, vice president of H&R Agri-Power and member of the long-range planning committee, shares this sentiment.

“This helps reduce overhead, so more resources are available to serve dealers in North America,” he says. “This provides a financially strong and sustainable association that will focus on federal and local law in a more tax efficient and efficient manner.”

Some associations and dealers not involved in consolidation expressed concern that a single national association would not be able to pay attention to local and state legislative issues as well as the regional association could.

Pattison Ag’s Art Ward says that as the merchant landscape changes, it’s important that associations remain relevant. “The dealers continue to scale up to be able to support their customers who are also getting bigger and bigger. The dealership association is no different, ”he said. “To support dealers large and small who operate in different states and provinces, the new larger association will be in a better position to identify the changing needs of member dealers and have the resources to meet those needs. This is what dealers expect from their association, and it is imperative that the association grow and adapt to meet these needs.

The dealers also note that the combined organization will be able to provide a higher level of service to its members. Jared Nobbe, Sydenstricker-Nobbe Partners, said, “The new combined organization of NAEDA will provide a better level of service by combining the strengths of each organization into a single voice for the dealership.

“For example, our combined organization will have the opportunity to have a larger, unified seat at the table on federal legislative matters while creating additional resources for state and provincial government affairs. In addition, we will be able to add new services such as financial services, education and mergers and acquisitions to the dealer network. This new combined organization will be well positioned to assist dealers in an ever-changing dealer environment.

The merger will also help secure a succession plan for association leaders down the road, notes Hunt. “The merger will use all the talents of the merging associations for the benefit of all dealers in North America,” he said.

Rosztoczy agrees and says, “One of the advantages of a national association is, you know, that we will have the 3 executives who run the 4 associations which all remain with the merger. So we will have a lot of strength from this point of view.

Hunt also says the reorganized NAEDA will provide additional resources and staff to better improve manufacturer relationships for dealers and notes that this is one of the key points in the consolidation effort. In addition, it will provide resources to dealers who need help with dealer operations, training and efficiency to become more profitable and sustainable, he said.

Dealer Benefits

Looking at the merger as a dealer, Ward says as dealers continue to grow and do business in multiple states and provinces, their association needs change. A larger national association would have greater resources to meet these needs.

“A larger national association will be better suited to support them across borders, especially in government affairs,” he said. “The new association will be able to represent a larger group of dealers when dealing with relationships with manufacturers. It will also be able to provide a wider range of products and services that help dealerships improve their business, regardless of their size. “

Hunt and Rosztoczy both note that the merger will simplify the assessment schedules for dealers. There will be a due structure common to all states and provinces involved in the merger, Hunt said. Currently, national dues are managed in two different ways and this varies by regional association, says Rosztoczy. Some regional associations charge their members for the combination of regional and national dues. However, for associations that do not, their dealers receive two invoices.

“These two structures will not change after the merger. If you are a regional association that is not involved in the merger, functionally nothing changes for you except that you have hopefully a stronger national association that can support you when you need help, ”he explains.

Stotz has stores that are currently in the WEDA area as well as some that are in the FWEDA area, but he says all of his locations will benefit from the merger. “Most of my stores are in FarWest where we’re not part of the unification, but that doesn’t hurt me. If these associations come together as a reseller, it only increases the chances that my national association can get things done when I need to, ”says Rosztoczy.

The consolidated NAEDA will cover 24 states and 4 provinces and have 3,000 member dealerships, said John Schmeiser, CEO of WEDA. For associations that have chosen not to participate in the consolidation effort, the membership door is not closed, he said. Regional associations that have withdrawn include:

  • FarWest Equipment Dealers Assn.
  • Iowa-Nebraska Equipment Dealers Assn.
  • Pioneer Equipment Dealers Assn.
  • Montana Equipment Dealers Assn.
  • Northeastern Equipment Dealers Assn.
  • Deep Southern Equipment Dealers Assn.

Mark Hennessy, president and CEO of the Iowa-Nebraska Dealers Assn., Says it’s important for their organization to have a strong national voice for dealers. However, at this stage, INEDA wants to see how the consolidation is going.

A list of the latest financial reports published by the American Equipment Dealer Associations is available for Ag Equipment Intelligence subscribers. here.